Penalty on consignor requires prior notice; absence of notice breached statutory procedure and natural justice.

Penalty under section 14-B(7) of the Punjab General Sales Tax Act could be levied only against the owner of the goods, and the term "owner" included the consignor or consignee, as applicable. Where the consignor was sought to be proceeded against, notice had to be issued before imposing penalty. As no notice was served on the consignor, the penalty proceedings breached the statutory requirement and the principles of natural justice. The penalty order was therefore unsustainable and was quashed.

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Issues: Whether penalty under section 14-B(7) of the Punjab General Sales Tax Act, 1948 could be levied without issuing notice to the consignor, where the owner of the goods was liable to be proceeded against.

Analysis: Penalty under section 14-B(7) could be imposed only on the owner of the goods. The expression "owner" in the relevant rules included the consignor or the consignee, as the case may be. Since the petitioner was the consignor and no notice was issued to it before the penalty proceedings, the order of penalty was passed in breach of the statutory requirement and the principles of natural justice.

Conclusion: The penalty order could not be sustained and was quashed for want of notice to the consignor.

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