2013 (5) TMI 818 - HC - VAT and Sales Tax

If by mistake some of the documents were not readily available at the time of checking, the principles of natural justice might require opportunity being given to produce the same and distinguished on facts.

Summary

Issues:
1. Imposition of penalty under section 78(5) of the Rajasthan Sales Tax Act, 1994.
2. Interpretation of rules 53 and 54 of the Rajasthan Sales Tax Rules, 1995 regarding declaration forms ST-18A and 18C.
3. Application of principles of natural justice in penalty proceedings.

Analysis:

1. The revision petition challenged an order of the Tax Board upholding the decision that penalty under section 78(5) could not be imposed on the respondent-assessee if the declaration form ST 18-A was found blank or incomplete, provided other supporting documents were in order. The petitioner cited previous judgments favoring the Revenue to support their case.

2. The Supreme Court emphasized the mandatory nature of section 78(2) of the Act, requiring goods in movement to be supported by the necessary declaration. The Court discussed the contents of forms ST-18A and 18C, highlighting the importance of complete information for proper assessment. Previous cases were cited to illustrate the significance of accurate documentation for tax assessment purposes.

3. The Court referred to previous decisions emphasizing the application of principles of natural justice in tax matters. It was noted that cases had been remanded back to the assessing officer to provide fresh opportunities for the assessee to be heard, in line with the law laid down by the apex court in relevant cases. Consequently, the revision petition was partly allowed, quashing previous orders and directing a fresh assessment with adequate hearing for the assessee.

In conclusion, the judgment focused on the proper application of tax laws, the necessity of complete documentation for tax assessment, and the importance of following principles of natural justice in penalty proceedings. The decision highlighted the need for assessing authorities to afford adequate opportunities for hearing to the concerned parties and to ensure compliance with legal requirements within a specified timeframe.