1993 (10) TMI 341 - HC - VAT and Sales Tax

Summary

Issues: Jurisdiction of officer-in-charge to levy penalty under section 22-A(7) of the Rajasthan Sales Tax Act, 1954.

In this case, the revision was filed against the Rajasthan Sales Tax Tribunal's order setting aside a penalty imposed by a lower division clerk, who was in-charge of the check-post, under section 22-A(7) of the Rajasthan Sales Tax Act, 1954. The Tribunal held that a person below the rank of Assistant Commercial Taxes Officer is not authorized to levy such penalty. The petitioner contended that the words "not below the rank of Assistant Commercial Taxes Officer" in the provision only qualify "other officer" and not the "officer-in-charge of the check-post or barrier." However, the court disagreed, emphasizing that the levy of penalty requires discretion as a quasi-judicial authority and must be done by a person authorized under the Act, not below the rank of Assistant Commercial Taxes Officer.

The court analyzed the scheme of the Act and highlighted that penalties are akin to assessment proceedings and subject to the same jurisdiction. It clarified that any officer, other than the assessing authority, can be authorized to impose penalties but must not be below the rank of Assistant Commercial Taxes Officer. The court emphasized that the power to impose penalties is of quasi-judicial nature and requires exercising discretion, which should not be entrusted to lower-ranking employees at check-posts or barriers. The term "officer-in-charge" signifies an authority not below the cadre of an "officer," indicating that only officers of a certain rank are empowered to act under section 22-A(7) of the Act.

Ultimately, the court found no merit in the petitioner's arguments and dismissed the petition, upholding the Tribunal's decision to set aside the penalty imposed by the lower division clerk.