2011 (7) TMI 1038 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to impugned order by Rajasthan Tax Board regarding penalty under section 78(10)(a) of Rajasthan Sales Tax Act, 1994 based on absence of seal of check-post on documents.

Analysis:
The petitioner filed a revision petition against the order of the Rajasthan Tax Board dismissing the appeal against the penalty imposed under section 78(10)(a) of the Rajasthan Sales Tax Act, 1994. The assessing officer had levied the penalty, which was later set aside on appeal. However, the appeal before the Rajasthan Tax Board resulted in dismissal as well. The petitioner argued that despite having all relevant documents, the absence of the seal of the check-post of the Commercial Taxes Department of Rajasthan led to the penalty imposition. The counsel contended that the orders of the appellate authorities should be set aside, and the assessing officer's decision should be reinstated.

Upon reviewing the arguments, the court noted that all necessary documents were indeed available and produced during the vehicle/goods checking, and the required tax had been paid by the assessee. The absence of the check-post seal was not a mandatory requirement under section 78(2)(b) of the Act of 1994. Referring to a previous case, the court highlighted that such provisions were directory, not mandatory. The court emphasized that the presence of all required documents during the checking indicated no intention to evade tax. Both appellate authorities had found no mens rea on the part of the assessee due to the availability of documents and payment of tax, leading to the conclusion that there was no intention to evade tax.

Given the absence of any illegality in the concurrent findings of the appellate authorities, the court declined to interfere with the decision in the revision petition. It was determined that no legal question was at issue in the petition, leading to its dismissal in limine.