2014 (7) TMI 1076 - HC - VAT and Sales Tax

Penalty under Section 78(5) - Time barred declaration form found in the enclosed documents - Held that - After analyzing the facts of the case and the arguments made by the learned counsel for the petitioner, in my view, no case is made out for any interference by this Court. In so far as issue relating to carrying out the time barred declaration form is concerned, it was simply a technical and human error on account of inadvertence and on such technicality, it cannot be said that the goods were being carried with the intention of tax evasion particularly when all other documents have been found to be proper, genuine and acceptable by the AO himself and no adverse comment was made by the AO on such supporting material. On expiry of the date, the declaration form does not become non-est but the same form can be revalidated by the learned AO and can be used for further period. Therefore, when the declaration form is complete in all respect and other documents have been found to be in order, in my opinion, no case is made out for imposition of penalty or call for any interference by this Court - Following decision of Assistant Commercial Taxes Officer vs. Mahaveer Chand Jain 2000 (3) TMI 1050 - RAJASTHAN HIGH COURT - Decided against Revenue.

Summary

Issues:
Challenge to penalty imposed under Section 78(5) of the Rajasthan Sales Tax Act, 1994.

Analysis:
The revision petition was filed challenging the order of the Rajasthan Tax Board affirming the deletion of penalty imposed on the respondent under Section 78(5) of the Act. The penalty was imposed due to a time-barred declaration form found during a vehicle check. The Deputy Commissioner (Appeals) deleted the penalty after considering the explanation provided by the respondent. The Tax Board rejected the department's appeal, leading to the current revision petition.

The petitioner department argued that the time-barred declaration form was a nullity, indicating an intention of tax evasion. They also contended that the Tax Board's order relied on a precedent that had been reversed by the Supreme Court. The petitioner sought the revision petition to be allowed based on these grounds.

After reviewing the arguments and the orders of the appellate authorities, the court found no grounds for interference. The court noted that the time-barred declaration form was a technical error and not indicative of tax evasion, especially since all other documents were in order. The court highlighted that the declaration form could be revalidated by the assessing officer and used for a further period. The court referenced a previous judgment to support its decision.

Ultimately, the court concluded that no error or illegality was found in the Tax Board's order, and no question of law was involved. As a result, the Sales Tax Revision Petition was dismissed, with no costs awarded.