2001 (9) TMI 1085 - HC - VAT and Sales Tax

Summary

Issues:
Impugning an interim order granting stay of penalty pending appeal under the Rajasthan Sales Tax Act, 1994.

Analysis:
The petitioner challenged an interim order by the Deputy Commissioner (Appeals-II) of the Department of Commercial Taxes, Jaipur, which granted stay of recovery of a penalty amount pending appeal. The penalty was imposed on the petitioner-company for not carrying the prescribed declaration form ST-18A in their truck carrying iron and steel, resulting in a violation of section 78(5) of the Rajasthan Sales Tax Act, 1994. The petitioner argued that the penalty imposition and the partial stay order were illegal, contending that a previous court decision had struck down section 78(5) of the Act. However, the department's counsel argued that the State had filed a special leave to appeal against the previous court decision, and the Supreme Court had granted a stay on the penalty levy under section 78(5), except in cases falling under clause (a) of sub-section (2) of section 78.

The Supreme Court's stay order clarified that the penalty under section 78(5) was stayed, except in cases falling under clause (a) of sub-section (2) of section 78, which mandates carrying prescribed declaration forms. The petitioner was found guilty of not carrying the prescribed declaration form in their truck, aligning with the apex court's interim order. This situation rendered the previous court decision inapplicable to the petitioner's case, as the obligation to carry the prescribed declaration form was a crucial factor.

The judgment emphasized that it was unnecessary to delve into the merits of the case to avoid prejudicing the ongoing appeal before the Deputy Commissioner (Appeals-II), Department of Commercial Taxes, Jaipur. After considering all the facts and circumstances, the court concluded that the case was not suitable for admission, leading to the dismissal of the writ petition.

In conclusion, the High Court dismissed the petition challenging the interim order granting stay of penalty recovery pending appeal, highlighting the importance of complying with the prescribed declaration forms under the Rajasthan Sales Tax Act, 1994, as per the apex court's interim stay order.