2002 (9) TMI 834 - HC - VAT and Sales Tax

Summary

Issues involved: Appealability of the order under section 84 of the Rajasthan Sales Tax Act, 1994 and imposition of penalty under amended sub-section (10A) of section 78.

Summary:

Issue 1: Appealability under Section 84 of the Rajasthan Sales Tax Act, 1994
The petitioner, a proprietor of Ganga Steels, dispatched iron goods to Vikas Industries, Nagaur, which were apprehended en route due to a missed check-post inspection. The respondents argued that the order is appealable under section 84 of the Act, providing an alternate remedy. However, the petitioner contended that despite appealability, the penalty imposed was unjustified as the goods were in order and there was no intention to evade tax.

Issue 2: Imposition of Penalty under Amended Sub-section (10A) of Section 78
The Court acknowledged that even if the order is appealable, its jurisdiction is not ousted. Considering that the truck driver had all necessary documents and no tax was due, the 50% penalty imposed under the amended sub-section (10A) of section 78 was deemed excessive. Consequently, the Court accepted the petition to the extent that upon payment of 5% of the goods' valuation, the truck and goods would be released, providing relief to the petitioner.

Conclusion:
The High Court of Rajasthan, in the case involving the dispatch of iron goods by Ganga Steels, Mandi Gobindgarh to Vikas Industries, Nagaur, ruled in favor of the petitioner due to the excessive penalty imposed despite compliance with necessary documentation and absence of tax evasion intent.