Natural justice in penalty proceedings under VAT law failed where objections were not shown to have been filed.

Penalty orders under the Kerala Value Added Tax Act were challenged on the ground of breach of natural justice and non-consideration of objections. The record showed that personal hearing was offered, adjournments were sought for filing returns and remitting tax, and those requests did not refer to any objections against the proposal notices. As the departmental file did not show receipt of objections, the material basis for alleging non-consideration was not established. On that footing, no violation of natural justice was made out, and there was no reason to disturb the Single Judge's refusal to exercise writ jurisdiction under Article 226.

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Issues: Whether the penalty orders under Section 67(1) of the Kerala Value Added Tax Act, 2003 were liable to be interfered with on the ground of violation of natural justice and non-consideration of objections, and whether the writ appeal deserved interference with the Single Judge's refusal to exercise jurisdiction under Article 226 of the Constitution of India.

Analysis: The record showed that personal hearing was offered before the penalty proceedings and that adjournments were sought by the appellant on both occasions on the ground that it was attempting to file returns and remit tax due. Those requests did not mention any objections having been filed to the proposal notices. Although copies of objections were produced in the writ petition, the departmental file did not disclose receipt of such objections. On that material, the finding that there was no factual basis to hold that objections had been submitted was not shown to be incorrect. In that situation, there was no basis to conclude that the principles of natural justice had been violated or that the learned Single Judge erred in declining to interfere in writ jurisdiction.

Conclusion: The challenge to the penalty proceedings failed, and the writ appeal was not entitled to interference.

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