Court orders petitioner to pay 15% tax, allows objection submission, stays penalty, warns of dismissal for non-compliance.

The Court directed the petitioner to pay 15% of the tax within six weeks, allowing objection submission and staying the remaining penalty demand. A fresh assessment was ordered after hearing the petitioner. Failure to comply would lead to dismissal of the petition without further reference to the Court. The writ petition was disposed of with directions for payment, objection submission, re-assessment, and consequences of non-compliance. No costs were awarded, and the related miscellaneous petition was closed.

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Issues:
Challenge to assessment order under PVAT Act, violation of principles of natural justice, delay in challenging impugned order, direction to pay tax, penalty, and re-assessment.

Analysis:
The petitioner filed a writ petition to challenge the assessment order passed under the PVAT Act. The inspection revealed discrepancies in the petitioner's transactions, with allegations of treating intra-state sales as inter-state sales to evade tax. The Inspecting Team instructed the dealer to remit tax at 14.5% for the financial year 2014-15. The petitioner was given opportunities to dispute the findings but failed to provide satisfactory evidence. The second respondent concluded that the transactions lacked proper documentation, leading to the imposition of tax and penalty.

The petitioner contended that the second respondent should have provided a personal hearing before imposing penalties, citing the necessity of natural justice principles. The petitioner argued that failure to grant a personal hearing violated their rights, referring to a relevant judgment. The respondents highlighted the delay in challenging the order and pointed out that one partner was a government servant, which led to separate actions by the Intelligence Department.

The Court acknowledged the delay in challenging the order but decided not to dismiss the petition immediately. Instead, the Court directed the petitioner to pay 15% of the tax within six weeks. Upon payment, the petitioner could submit objections, and the remaining penalty demand would be stayed. The second respondent was instructed to conduct a fresh assessment after hearing the petitioner. Failure to comply would result in dismissal of the petition without further reference to the Court.

In conclusion, the Court disposed of the writ petition with directions for payment, objection submission, re-assessment, and consequences of non-compliance. No costs were awarded, and the related miscellaneous petition was closed.

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