1990 (9) TMI 318

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....ce of any specific provisions of law on that point in the Orissa Sales Tax Act, 1947 and the Rules made thereunder?" 2.. The dealer is registered under the Act. In respect of four years, i.e., 1970-71 to 1973-74, the dealer was assessed. Sometimes thereafter, the Sales Tax Officer issued notice to the dealer to show cause why penalty under section 9-B(3) of the Act shall not be imposed for having collected excess tax under the Act. In respect of three years, i.e., 1970-71 to 1972-73 notice was issued on October 10, 1977 and in respect of the year 1973-74 notice had been issued on June 25, 1977. Dealer's explanation not being accepted, penalty was imposed. 3.. The Assistant Commissioner has set aside the orders of the Sales Tax Officer....

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....ded that no penalty shall be imposed under this sub-section without giving the person concerned a reasonable opportunity of being heard. (4) Any penalty imposed under sub-section (3) shall be without prejudice to any punishment that may be imposed under the provisions of clause (b) of sub-section (1) of section 25." 5.. Bare perusal of the aforesaid provisions indicate that no timelimit has been fixed by the Legislature for imposition of penalty under section 9-B(3) of the Act. This does not, however, give arbitrary power to authorities under the statute to initiate proceedings at their own whims or caprices. A statutory authority is required to act honestly, judiciously and diligently. When on account of long inaction and sudden exer....