2000 (11) TMI 1188 - HC - VAT and Sales Tax

Summary

Issues:
1. Penalty under section 22A(7) of the Rajasthan Sales Tax Act, 1954 for carrying own goods without delivering to transporter.
2. Interpretation of section 22A(3) regarding goods under transport.
3. Obligations under section 22-C for import of goods into the State against declaration.

Issue 1: Penalty under section 22A(7)
The revision challenged the order of the Rajasthan Tax Board affirming the deletion of penalty under section 22A(7) imposed on an assessee for carrying own goods without delivering them to a transporter. The respondent was found with goods as a passenger, not transporting them through a carrier. The appellate authorities set aside the penalty, stating that such goods cannot be considered under transport.

Issue 2: Interpretation of section 22A(3)
Section 22A(3) imposes obligations on vehicle owners or officers to carry necessary documents for goods transport. Goods under transport are defined as those handed over to a carrier until complete delivery. This provision does not apply to passengers carrying their own goods without involving a transporter, shifting responsibility to the vehicle owner for carrying required documents.

Issue 3: Obligations under section 22-C
Section 22-C mandates importers to obtain a declaration for goods brought into the State, not the transporter. The importer in this case failed to comply with declaration requirements for notified goods brought from outside the State for sale within. The transaction lacked proper documentation, indicating an attempt to evade taxes, leading to the restoration of the assessing authority's order imposing penalties.

In conclusion, the revision was allowed, setting aside the appellate authorities' orders and restoring the assessing authority's decision. The judgment emphasized the importance of complying with legal obligations regarding goods transport and importation, holding individuals accountable for tax evasion attempts.