2015 (5) TMI 102 - HC - VAT and Sales Tax

Imposition of penalty - declaration Form ST 18-A was incomplete - Held that - If the declaration Form ST 18-A is incomplete or material particulars are lacking then the penalty is required to be imposed but in the instant case, the penalty is not leviable on an entirely different fact, noticed by this court, though the matter deserved to be restored for further verification and finding of fact but then it is a matter pertaining to the year 1998, it was thought prudent to decide the issue as facts are verifiable on perusal of the orders and the appeal can be decided. - crucial date is 21.2.1998 on which date the goods were being carried by the assessee from the Bombay Office to its Kota office and admittedly on stock/branch transfer, therefore the judgment relied upon by the revenue in the present case may not hold good and inapplicable on these facts found. It is an admitted position that as per the Notification issued by the Government of Rajasthan, bearing No./F.4 (1)FD/Tax/Div/2000-314 dated 30.3.2000 there was no requirement to carry the declaration Form ST 18-A prior to 30.3.2000 in case where goods were being transmitted/carried on stock/branch transfer. - since the issue involved in the instant case has already been settled and decided in the Case of Assistant Commercial Taxes Officer Vs.I.C.I. (India) Ltd. (2013 (5) TMI 764 - RAJASTHAN HIGH COURT), no penalty in law is leviable and penalty is not sustainable - Decided against Revenue.

Summary

Issues:
1. Imposition of penalty under Section 78(5) of the Rajasthan Sales Tax Act,1994 for incomplete declaration Form ST 18-A.
2. Justification for penalty imposition based on clerical error.
3. Interpretation of the requirement to carry declaration Form ST 18-A for stock/branch transfers.
4. Applicability of previous judgments on penalty imposition.

Analysis:
1. The petitioner-department filed a Sales Tax Revision Petition challenging the Rajasthan Tax Board's order imposing a penalty for an incomplete declaration Form ST 18-A. The Assessing Officer imposed a penalty of 20% of the total value of goods for incomplete documentation found during a vehicle interception.
2. The Dy. Commissioner (Appeals) upheld the penalty, but the Tax Board concluded that the clerical error was a reasonable justification and accepted the appeal of the assessee, finding no grounds for penalty imposition under Section 78(5) of the Act of 1994.
3. The court considered the requirement to carry declaration Form ST 18-A for stock/branch transfers and cited a previous judgment to establish that no penalty was leviable based on the specific circumstances of the case, where the goods were being transmitted on stock transfer on a date prior to the requirement to carry the declaration form.
4. Despite acknowledging the support of a judgment by the Hon'ble Apex Court for penalty imposition in cases of incomplete forms, the court found that the specific circumstances of the case, along with the settled issue in a previous case, did not warrant penalty imposition. The court dismissed the Sales Tax Revision petition, ruling in favor of the assessee based on the established legal principles and interpretations.