1985 (10) TMI 260 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Whether an offence under section 16(1)(e) of the Rajasthan Sales Tax Act, 1954, was made out.
2. Whether the penalty was wrongly directed to be imposed under section 16(1)(n) of the said Act.
3. Whether the Sales Tax Appellate Tribunal should re-determine the revision and decide the question of levy of penalty and its quantum.

Detailed Analysis:

Issue 1: Offence under Section 16(1)(e) of the Rajasthan Sales Tax Act, 1954
The court examined whether the dealer-assessee had committed an offence under section 16(1)(e) of the Act, which applies when a dealer-assessee "has concealed any particulars from any return furnished by him or has deliberately furnished inaccurate particulars therein." The court noted that the dealer-assessee's transactions for the period 1st January, 1973, to 20th October, 1973, were not entered in the regular books of accounts and were found during an inspection on 21st October, 1973. These transactions were not disclosed in the return filed by the dealer-assessee, which constituted concealment of particulars of turnover. Therefore, the court held that section 16(1)(e) was applicable and the dealer-assessee had indeed committed an offence under this provision.

Issue 2: Wrongful Imposition of Penalty under Section 16(1)(n)
The court scrutinized whether the penalty was wrongly imposed under section 16(1)(n) of the Act, which is a residuary provision applicable when the dealer-assessee "wilfully acts in contravention of provisions of this Act, not otherwise provided for." The court observed that the Board of Revenue had misapplied section 16(1)(n) instead of section 16(1)(e), which specifically addresses the concealment of particulars or deliberate furnishing of inaccurate particulars. The court emphasized that section 16(1)(e) is directly applicable to the facts of the case, making the application of section 16(1)(n) inappropriate. Consequently, the penalty should have been imposed under section 16(1)(e).

Issue 3: Re-determination by Sales Tax Appellate Tribunal
The court decided that the case should be sent back to the Sales Tax Appellate Tribunal, Ajmer, for re-determination. The Tribunal is directed to re-examine the revision and decide the question of levy of penalty and its quantum in accordance with the law, considering the legal principles enunciated in relevant Supreme Court and High Court judgments. The orders dated 15th February, 1979, by the single Member of the Board and 7th July, 1980, by the Division Bench of the Board were set aside. The Tribunal is instructed to afford an opportunity of hearing to the parties before making its decision.

Conclusion:
The court concluded that the penalty should be imposed under section 16(1)(e) of the Rajasthan Sales Tax Act, 1954, for the dealer-assessee's concealment of particulars in the return. The case is remanded to the Sales Tax Appellate Tribunal, Ajmer, for re-determination of the revision and appropriate imposition of penalty. The parties are to bear their own costs.