2013 (10) TMI 1338 - HC - VAT and Sales Tax

Summary

Issues involved: Sales tax revision u/s 86 of the Rajasthan Sales Tax Act, 1994 against the judgment of the Rajasthan Tax Board, Ajmer, in Appeal No. 203/2006.

The Rajasthan High Court considered a sales tax revision u/s 86 of the Rajasthan Sales Tax Act, 1994 against the judgment of the Rajasthan Tax Board, Ajmer, in Appeal No. 203/2006. The matter revolved around the penalty under section 78(5) of the Act of 1994 imposed on the owner of goods in transit. The Deputy Commissioner (Appeals), Commercial Taxes Department, absolved the respondent-assessee from the penalty under section 78(5) citing a notification dated March 22, 2002, which amended the section. The petitioner argued that the notification was retrospective in nature based on a Supreme Court judgment. However, the Rajasthan Tax Board's order upholding the Deputy Commissioner's decision was deemed unsustainable in light of the Supreme Court's ruling. Despite dismissing the sales tax revision, the respondent-assessee was held not liable to pay any penalty under section 78(5) due to the submission of Form No. ST-18A, as per the Supreme Court's decision in another case. The Court clarified that the respondent-assessee was absolved from the penalty under section 78(5) based on the facts presented.