2017 (12) TMI 635

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.... the penalty levied by the revisional authority under section 34(7) of the Gujarat Value Added Tax Tribunal (hereinafter referred to as the "GVAT Act") is deleted. 2. The respondent herein was engaged in the business of trading in edible oil. The respondent was assessed by the competent authority under section 34(2) of the GVAT Act and an assessment order was passed on 18.10.2011. During the course of assessment proceedings, no additional demand came to be raised. The Deputy Commissioner of Commercial Tax (hereinafter referred to as the "revisional authority"), in exercise of powers under section 75 of the GVAT Act, took the assessment order in revision. The revisional authority noticed that during the year under consideration the respon....

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....s petition is as to whether in the facts and circumstances of the case, the revisional authority was justified in levying penalty under section 34(7) of the GVAT Act. 6 A perusal of the impugned order reveals that, before the Tribunal, it had been contended that on behalf of the respondent dealer that no show cause notice in Form No.309 was issued to the dealer prior to levy of penalty under section 34(12) of the GVAT Act. Moreover, there was no proposal to levy of penalty in the notice and hence, no penalty could have been levied under section 34(12) of the GVAT Act. The Tribunal has accepted the submissions advanced on behalf of the respondent dealer while deleting the penalty. 7. Sub-section (7) of section 34 of the GVAT Act reads ....

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.... (7) of section 34 of the GVAT Act provides for imposing penalty after affording the dealer an opportunity of being heard. Accordingly, rule 46 of the rules prescribes the manner in which notice is required to be issued prior to imposing any penalty under various provisions of the Act, and the concerned authority has to issue notice in the prescribed form specifically marking the ground and the provision under which penalty is sought to be imposed on the dealer and call upon him to show cause as to why penalty under such provision should not be imposed. Evidently, therefore, the statute contemplates issuance of notice indicating the default and the penalty proposed to be levied prior to passing any order under sub-section (7) of section 34 ....