MOHAN, J. ( 1 ) THE short question that arises for our consideration in this case is whether the notice issued against the appellant under Section 28-AA (4) read with Rule 23f (2) and (3) of the Karnataka Sales Tax Act, 1957, in No. CTO/int/bly/90-91 dated 9-1 -1991 proposing to levy tax of Rs. 29,700/- as well as notice even dated proposing to levy penalty of Rs. 59,000/- are valid in law? We may also add, for the sake of convenience, pursuant to this proposal notice the appellant filed his detailed explanation. On consideration of all that explanation, by order dated 15-4-1991 under Assessment No. 1/90-91, the assessment has been made as under:"order UNDER SECTION 28 AA (5) OF THE ACT 1957 the goods vehicle which failed to deliver the transit passes issued to the driver on 18-12-1990, and consequently notice under Section 28 AA (5) was issued and served on the owner of the vehicle on 17-2-1991. The learned Advocate representing the goods vehicle has filed objections stating that the proposed penalty is too much and because it is lawful to levy, it cannot be levied. There should be reasonability in the levy of penalty. Considering the facts of the case, I feel the reasonable penalty will be Rs. 9,000-00 considering the total amount of tax. Accordingly a penalty of Rs. 9,000/- is levied under Section 28- aa (5)of the Act. Demand notice will issue accordingly. "pursuant to this assessment, a demand notice was issued under the following terms: "government OF KARNATAKA (Commercial Taxes Department) year of Assessment: 1990-91 registration Certificate No. Vehicle No. CTX 9556 to m/s, Sri Sathu D'souza s/o Albart D'souza, nityananda House, madanathiary, belthangadi Taluk. NOTICE take notice that you have been finally assessed under the karnataka Sales Tax Act 1957 to a tax of Rs. 29,700-00 and penalty of Rs. 9,000-00 (Total Rupees thirty eight thousand seven hundred only) for the year ending 1990-91 when your vehicle was being transported vanaspathi were checked on 18-12-1990 and transit passes were issued which were not delivered at the last exit checkpost as required by the Law. You have to pay a sum of Rs. 38,700-00 (Rupees thirty eight thousand seven hundred) only. 9,000-00 (Total Rupees thirty eight thousand seven hundred only) for the year ending 1990-91 when your vehicle was being transported vanaspathi were checked on 18-12-1990 and transit passes were issued which were not delivered at the last exit checkpost as required by the Law. You have to pay a sum of Rs. 38,700-00 (Rupees thirty eight thousand seven hundred) only. This balance of tax shall be paid within twenty one days from the date of service of this notice: by money order to the undersigned or by crossed cheque in favour of the undersigned or by remittance into the Government Treasury or by crossed demand draft or crossed Postal Order or to the Commercial Tax Officer/assistant Commercial Tax officer, failing which, the amount will be recovered as if it were an arrears of land revenue and you will be liable to penalty as provided in Section 13 of the Karnataka Sales Tax Act, 1957.