1989 (2) TMI 383 - HC - VAT and Sales Tax

Summary

Issues involved: Interpretation of penalty provision u/s 16(1)(e) of the Rajasthan Sales Tax Act for non-inclusion of cinder in returns filed by the dealer for three assessment periods.

Summary:
The Rajasthan High Court addressed three revisions against a common order by the Sales Tax Tribunal regarding penalty imposition u/s 16(1)(e) of the Rajasthan Sales Tax Act for not including cinder in the dealer's returns for three assessment periods. The Tribunal set aside the penalty, stating no attempt at concealment was evident as the transaction was recorded in the dealer's books produced before tax authorities. The Tribunal's decision was based on the requirement of conscious concealment or deliberate furnishing of inaccurate particulars for penalty imposition.

The Court referred to the penalty provision in section 16(1)(e) of the Act, emphasizing that it applies when a person consciously conceals or deliberately furnishes inaccurate particulars in their return. Citing precedent, the Court highlighted that mere rejection of the explanation as false does not automatically warrant a penalty; there must be evidence of conscious concealment or deliberate inaccuracy. In this case, the Tribunal found no concealment as the transaction was in the dealer's accounts provided to authorities, and the dealer believed the transaction was not subject to sales tax.

Ultimately, the Court upheld the Tribunal's decision to set aside the penalty, as there was no evidence of intentional concealment or inaccurate particulars. The revisions were dismissed with no costs awarded.

Separate Judgment: None.