Judicial review of penalty quantum permits reduction where discretion is not exercised properly and breach is technical.

The Tribunal held that section 8, including section 8(6), of the West Bengal Taxation Tribunal Act, 1987 empowered it to examine the quantum of penalty for transporting goods without a permit. It further stated that penalty discretion must be exercised properly and judiciously, having regard to the degree of breach and all relevant circumstances. On the facts, the breach was a first lapse, arose from a communication gap between offices, and was treated by the authorities as a technical infraction. The penalty was therefore reduced to Rs. 10,000 and the excess amount was directed to be refunded.

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Issues: Whether the Tribunal could interfere with the quantum of penalty imposed for transport of goods without permit, and whether the penalty deserved reduction on the facts.

Analysis: The Tribunal held that section 8 of the West Bengal Taxation Tribunal Act, 1987, particularly section 8(6), conferred adequate jurisdiction to examine the quantum of penalty. Although quantification of penalty is ordinarily a matter for the appropriate authority exercising discretion, that discretion must be exercised properly and judiciously having regard to the degree of infraction and all relevant circumstances. On the facts, the infraction was the first lapse, arose from a communication gap between offices, and had already been found by the authorities below to be a technical breach without denial of the surrounding circumstances.

Conclusion: The Tribunal could interfere with the quantum of penalty, and the penalty was lawfully reduced to Rs. 10,000 with refund of the excess amount.

Ratio Decidendi: Where the statute confers jurisdiction to examine penalty, the Tribunal may interfere with the quantum if the discretion to impose penalty has not been exercised properly and judiciously in light of the extent of breach and attendant circumstances.

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