https://www.taxtmi.com/caselaws?id=295760 Penalty under Section 53(3) of the APVAT Act was unsustainable where the show-cause notice did not plead fraud or wilful neglect and merely repeated the statutory wording. The provision permits penalty only when under-declaration is accompanied by fraud or wilful neglect, and its proviso requires a reasonable opportunity of hearing before levy. Because the notice failed to state the factual basis of the allegation, it did not inform the dealer of the real charge or allow an effective reply. The penalty proceedings and notice were therefore invalid and liable to be quashed. en-us Tue, 17 Jul 2012 00:00:00 +0530 Fri, 18 Jun 2021 16:18:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=295760 Penalty under Section 53(3) of the APVAT Act was unsustainable where the show-cause notice did not plead fraud or wilful neglect and merely repeated the statutory wording. The provision permits penalty only when under-declaration is accompanied by fraud or wilful neglect, and its proviso requires a reasonable opportunity of hearing before levy. Because the notice failed to state the factual basis of the allegation, it did not inform the dealer of the real charge or allow an effective reply. The penalty proceedings and notice were therefore invalid and liable to be quashed. Case-Laws VAT and Sales Tax Tue, 17 Jul 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=295760