The instant case is rather an unusual one where the Himachal Pradesh Tax Tribunal (for short ‘Tribunal’) though had quashed all the proceedings against the petitioner but then proceeded to burden it with Rs. 20 lakhs, as costs, that too, only on the ground that “it should not be allowed to get the benefit of technicalities of law and the wrongs committed by the Assessing Authority”.

2. However, before we proceed to determine the question on merit, it would be necessary to recapitulate few facts, which are as under:

3. The petitioner is a registered dealer under the Himachal Pradesh Value Added Tax Act, 2005 (for short ‘VAT Act, 2005’) and also under the Central Sales Tax Act, 1956) for manufacturing and trading of drugs and medicines in the State of Himachal Pradesh. The petitioner in the year 2005 has set up a factory for manufacturing of drugs at Baddi.

4. The assessment for the year 2005-06 framed by the Assessing Authority was reopened under the VAT Act, 2005 and the petitioner was issued notice in Form Vat-XXXIX.

5. These proceedings culminated in the imposition of penalty upon the petitioner to the tune of Rs. 84,44,838/-. Though an appeal against the same