Appellate Tribunal Sets Aside the Penalty Orders Passed on Non-Working Days

The dealer being aggrieved by the common order dated 6/5/2012 passed by Learned Objection Hearing Authority (OHA) on the objections filed by the dealer-assessee u/s 74 of DVAT Act has appealed before the Appellate Tribunal as the objections were dismissed aggrieved by the framing or assessments of two penalties i.e., u/s 86 (14) of VAT Act. A penalty of Rs. 50,000 was imposed in respect of the tax period 2014-15, u/s 33 read with section 86(14) of VAT on the ground that the dealer failed to appear or make any communication despite services of notice u/s 59(2) of DVAT Act the assessment of 2014-15. Another penalty of Rs, 50,000 was imposed u/s 33 read with section 86 (14) of DVA’I’ Act, in respect of tax period annual 2015-16, on the ground that despite notice u/s 59 (2) of DVAT Act to the dealer regarding submission of documents, it failed to appear or make any communication.

The assessment order dated 09-03-2019 was framed on the second Saturday, the assessment order dated 07-03-2020 was a Saturday, and since these were passed on non-working days, the assessments were decided to be set aside. The Revenue admits that 09-03-2019 was the second Saturday and 07-03-2020 was Saturday and it was unexplained how assessments came to be framed on non-working days. Therefore, the impugned assessments deserve to be set aside.  Hence, the appeal was allowed and the assessments of penalty, as well as the impugned order passed by learned OHA, were set aside.

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