2011 (7) TMI 1053 - HC - VAT and Sales Tax

Summary

Issues:
Challenge against order of Rajasthan Tax Board, Ajmer dismissing petitioner's appeal against penalty under section 78(10A) of Rajasthan Sales Tax Act, 1994 based on absence of seal of check-post of Commercial Taxes Department.

Analysis:
The revision petition challenged the order of the Rajasthan Tax Board, Ajmer, which dismissed the petitioner's appeal against a penalty imposed under section 78(10A) of the Rajasthan Sales Tax Act, 1994. The assessing officer levied the penalty, but it was set aside by the Deputy Commissioner (Appeals) and upheld by the appellate authority. The petitioner argued that despite having all relevant documents, the penalty was imposed due to the absence of the seal of the check-post of the Commercial Taxes Department of Rajasthan. The petitioner sought to set aside the orders of the appellate authorities and reinstate the assessing officer's decision.

Upon review, it was noted that all required documents were indeed available and produced during the checking of the vehicle/goods, with the necessary tax payment made by the assessee. The absence of the seal of the check-post of the State of Rajasthan on the documents was deemed not mandatory under section 78(2)(b) of the Act of 1994. Citing a previous judgment, the court clarified that such provisions were directory and not mandatory. The court emphasized that the presence of all essential documents during the checking negated any inference of intention to evade tax. Both appellate authorities had found no mens rea on the part of the assessee, given the availability of required documents and tax payment, thus ruling out any intent to evade tax.

In light of the above, the court found no illegality in the concurrent findings of the appellate authorities and declined to interfere with the decision in the revision petition. It was concluded that no question of law was involved in the matter, leading to the dismissal of the revision petition without further consideration.