Penalty remand requires fresh consideration of assessee's explanation before any lawful reimposition

In revision, no interference was warranted where the penalty order had been set aside and the matter remanded for fresh consideration. Although the assessee's explanation should have been examined in the State's appeal, the remand required the Sales Tax Officer to consider that explanation before imposing any penalty afresh under the law applicable to the relevant assessment year. The assessee's grievance was therefore rejected, because the fresh decision process still preserved the opportunity to raise its defence before any lawful penalty was imposed.

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Issues: Whether the assessee was entitled to interference in revision on the ground that its explanation had not been considered when the penalty order was set aside and the matter remanded for fresh consideration.

Analysis: The Tribunal had found that the penalty could not be sustained as imposed and had directed the Sales Tax Officer to impose a proper penalty in accordance with the law applicable to the relevant assessment year. Although the assessee's explanation ought to have been examined even in the State's appeal, the matter was sent back for fresh decision, and the Sales Tax Officer would still have to consider the assessee's explanation before imposing any penalty according to law.

Conclusion: No interference was called for in revision, and the assessee's grievance was rejected.

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