2008 (8) TMI 827 - HC - VAT and Sales Tax

Court quashes penalty order, revives joint consideration, directs simultaneous decisions.

Haji Abdul Hussain T. Malu Bhai Versus Assistant Commercial Tax Officer and others

Haji Abdul Hussain T. Malu Bhai Versus Assistant Commercial Tax Officer and others - [2009] 24 VST 117 (MP) Issues:Challenge to penalty orders and revisional orders passed by assessing authority and revisional authority, imposition of penalty, dismissal of revision petition, attachment order.Analysis:The petitioner, a proprietorship concern in the timber business, faced penalty orders and revisional orders challenging the assessment proceedings. The Department alleged the petitioner imported goods from outside Madhya Pradesh for resale, based on third-party information. Despite inspection yielding no evidence, an assessment was suggested, denying the petitioner cross-examination rights. The assessing authority passed an assessment order, challenged in a revision petition dismissed in 2002. The petitioner filed a writ petition, leading to a direction for a second revision petition. The Additional Commissioner directed a fresh assessment, resulting in a similar order. The petitioner appealed, but the Appellate Deputy Commissioner dismissed it in 2008. Subsequently, penalty proceedings were initiated, leading to a penalty being imposed, challenged in a revision petition. The revisional authority set aside the penalty, remanding it for fresh determination, resulting in the same penalty. Another revision petition was rejected in 2008, citing finality of the assessment order upheld by the appellate authority.The petitioner contested the penalty imposition and revisional authority's dismissal, claiming it was premature due to the pending revision petition against the assessment order. The respondents argued that penalty proceedings were independent of assessment proceedings and justified the penalty due to violations. The court heard arguments from both sides and noted the pending revision petition against the assessment order, indicating non-finality. It emphasized the revisional authority's power to set aside orders and the need for joint consideration of penalty and assessment proceedings to avoid conflicting views. Consequently, the court quashed the revisional order in penalty proceedings, reviving the revision petition for joint consideration with the assessment proceedings. The attachment order was also quashed, directing the revisional authority to decide both proceedings simultaneously but through separate orders.The parties were directed to appear before the Deputy Commissioner of Commercial Tax, who would forward the case record to the relevant revisional authority for further proceedings.