Fair hearing in revision led to setting aside of a penalty order and remand for reconsideration.

Revisional penalty under the Karnataka Value Added Tax Act, 2003 was challenged on the ground that the assessee had not been given sufficient opportunity of hearing. The Court did not examine the merits of the penalty or the dispute concerning the declaration form; instead, it held that the revisional proceedings suffered from a denial of fair hearing. The revisional order was set aside and the matter was remanded to the revisional authority for fresh consideration after granting the assessee an opportunity to be heard.

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Issues: Whether the revisional order sustaining penalty under the Karnataka Value Added Tax Act, 2003 could be sustained when the assessee was not given a sufficient opportunity of hearing.

Analysis: The penalty had been restored in revision under the revisional powers conferred by the Karnataka Value Added Tax Act, 2003. The grievance before the Court was confined to denial of a fair opportunity in the revisional proceedings. Without entering into the merits of the penalty or the substantive controversy regarding the declaration form, the Court found it appropriate to set aside the revisional order and remit the matter for reconsideration so that the assessee could be heard.

Conclusion: The revisional order was set aside and the matter was remanded to the revisional authority for fresh consideration after granting an opportunity of hearing to the assessee.

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