2007 (8) TMI 700 - HC - VAT and Sales Tax

Summary

Issues:
Penalty under section 78(5) of the Rajasthan Sales Tax Act, 1994 based on incomplete form ST-18A.

Analysis:
The judgment deals with the imposition of a penalty under section 78(5) of the Rajasthan Sales Tax Act, 1994 on the respondent-assessee for not completely filling up form ST-18A despite having relevant documents like bill and bilty during transit. The counsel for the Revenue relied on a Supreme Court judgment regarding the authority of Check-post Officers to question the value of goods in transit and impose penalties. However, the court found that the circumstances in the present case were different as the relevant documents were present, and the issue was deemed a clerical error by the appellate authorities. The court distinguished this case from previous judgments cited by the Revenue, emphasizing that the penalty was not applicable due to the genuine nature of the documents and the subsequent correction of form ST-18A.

The judgment highlighted that the furnishing of form ST-18A with some cuttings and later correcting it was considered a bona fide clerical error by the appellate authorities, leading to the conclusion that no penalty under section 78(5) of the RST Act was warranted in such circumstances. The court reiterated its stance based on previous similar cases that no penalty should be imposed in situations like the one at hand, where there was no intention to evade tax and the error was rectified promptly. Consequently, the court dismissed the revision petition, stating that no question of law arose for consideration under section 86 of the Act, and the petition lacked merit.

In conclusion, the judgment clarifies the application of penalties under the Rajasthan Sales Tax Act, 1994 in cases where incomplete documentation is deemed a clerical error and promptly rectified. The court's decision was based on the genuine nature of the documents and the absence of intent to evade tax, leading to the dismissal of the revision petition.