I have seen some cases where the VAT tribunal in Punjab has remanded some cases to the designated officer for deciding a fresh on penalty proceedings. For example recently I saw a case where the Tribunal remanded the case (where penalty u/s 51(7) of PVAT Act was levied) giving reasons therein that the inquiry was not conducted properly by the designated officer so as to come to conclusion whether there was an attempt to evade tax or not and consequently whether penalty should have been levied or not.
In my view if an order of penalty is suffering from procedural infirmities due to fault of the authorities leving penalty, then such order of penalty should be quashed instead of being remanded, more so in tax laws which are welfare laws. The reason behind it which I find out of my judicial conscience is that subjecting a tax payer to penal proceedings twice in a welfare law would be prejudicial to his interest and also would amount to double jeopardy and causes unneccessary hardship and harrassment to such tax payer.
Tax payer should not suffer for the fault of the department officials committed in initiating and concluding penal proceedings.
Please provide your valuable comments in this regard
