Independent penalty orders under sales tax law lack jurisdiction where the statutory scheme does not permit separate imposition.

The Madras High Court reaffirmed that an assessing authority has no jurisdiction to impose penalty under section 16(2)(d) of the Tamil Nadu General Sales Tax Act by a separate and independent order. It held that the later insertion of section 12C did not displace or dilute the earlier interpretation of section 16(2), and the independent penalty order therefore remained unsustainable. On that basis, the penalty imposed under section 16(2)(d) was set aside in favour of the assessee.

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Issues: Whether the assessing authority could levy penalty under section 16(2)(d) of the Tamil Nadu General Sales Tax Act, 1959 by a separate and independent order, especially after insertion of section 12C of the Act.

Analysis: The writ petition challenged a penalty imposed by an independent order under section 16(2)(d). The Court relied on its earlier decision holding that under section 16(2) the assessing authority has no jurisdiction to impose penalty by a separate and independent order. The introduction of section 12C did not alter the continued operation of section 16(2), and the mere insertion of section 12C could not render the earlier binding view irrelevant. Since the penalty order was passed independently under section 16(2), it could not be sustained.

Conclusion: The penalty order was without jurisdiction and was set aside in favour of the assessee.

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