2002 (11) TMI 767 - HC - VAT and Sales Tax

Summary

The Rajasthan High Court dismissed the department of Commercial Taxes' challenge against the order setting aside the penalty imposed on M/s. Fabrico Saraf House for not using a power-loom for personal use and letting it out on rent due to reasons beyond their control. The court found the penalty unjustified as the purchaser had a reasonable excuse for not using the machinery for the specified purpose, in accordance with the Central Sales Tax Act, 1956.