1992 (3) TMI 333 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to judgment of Rajasthan Sales Tax Tribunal regarding penalties under Central Sales Tax Act for purchases made by assessee.

Analysis:
The revision filed by the assessee under section 15 of the Rajasthan Sales Tax Act read with section 9 of the Central Sales Tax Act challenges the judgment of the Rajasthan Sales Tax Tribunal dated December 27, 1989. The assessee, engaged in the business of generation, transmission, and distribution of electric power, made purchases under section 8(3)(b) of the Central Sales Tax Act, which were alleged to be used for electricity generation or distribution. Penalties were levied under section 10-A of the Central Sales Tax Act for contravention of section 10(b) for the assessment year 1977-78. The assessment order was appealed before the Deputy Commissioner (Appeals) and then to the Board of Revenue and subsequently transferred to the Rajasthan Sales Tax Tribunal for a second appeal.

The counsel for the assessee argued before the Rajasthan Sales Tax Tribunal that the purchased items were used for electricity generation/transmission, citing a previous decision of the Rajasthan High Court. The Tribunal set aside penalties for most items except for the purchase of a Matador vehicle, deeming the certificate provided unreliable. The Tribunal's judgment was based on the belief that the Matador was used only for carrying employees, which the court found to be incorrect. The court held that the Tribunal should have conducted further inquiry before deeming the certificate unreliable, as it violated principles of natural justice. The matter was remanded to the Sales Tax Tribunal for a proper investigation to determine the reliability of the certificate, ensuring both parties have an opportunity to present their case before a final decision is made.

In conclusion, the court partially allowed the revision, setting aside the Tribunal's order and remanding the matter for further inquiry. The court emphasized the importance of following principles of natural justice and giving both parties a fair opportunity to present their case before reaching a final decision.