2014 (9) TMI 231 - HC - VAT and Sales Tax

Penalty under section 78 (5) of the Rajasthan Sales Tax Act, 1994 - absence of declaration form ST18C with the goods in transit - contravention of Section 78(2) of the 1994 Act read with Rule 54 of the Rajasthan Sales Tax Rules, 1995 - Held that - The Board has noted the fact that submission of declaration form ST18C along with the reply to show cause notice entailed compliance with the Section 78 (2) of the 1994 Act. In coming to this conclusion the Board relied upon the judgment of the Hon ble Supreme Court in the case of State of Rajasthan Vs. D.P. Metals 2001 (10) TMI 881 - SUPREME COURT OF INDIA . Mr. Ajay Kumar Meena, ACO appearing in person for the department is not in a position to show as to how the enunciation of the Hon ble Supreme Court in the case D.P. Metals (supra) is not applicable to the facts of the case wherein the declaration form ST18C not in accompaniment of goods in transit at the time of checking was admittedly submitted along with the reply to show cause notice was found compliance with the Section 78(2) of the 1994 Act - The issue raised in this revision petition is fully covered by the judgment in the case of D.P. Metals (supra). No question of law substantial or otherwise is made out. Decided against assessee.

Summary

Issues Involved:
Challenge to order dismissing appeal against penalty under Section 78(5) of the Rajasthan Sales Tax Act, 1994 due to absence of declaration form ST18C with goods in transit.

Detailed Analysis:

1. Challenge to Order Dismissing Appeal:
The revision petition challenges the order of Rajasthan Tax Board dismissing the appeal against the penalty imposed under Section 78(5) of the Rajasthan Sales Tax Act, 1994. The penalty was set aside by the Dy. Commissioner (Appeals) Commercial Taxes, but the Revenue filed an appeal against this decision, which was subsequently dismissed by the Rajasthan Tax Board.

2. Absence of Declaration Form ST18C:
The case involved goods in transit checked by the statutory authority, where it was discovered that the declaration form ST18C, required under Section 78(2) of the 1994 Act, was missing. The Assessing Authority considered this absence as a contravention of the Act and issued a show cause notice to the Assessee.

3. Legal Proceedings:
The Assessee filed a reply to the show cause notice along with the missing declaration form ST18C. However, the Assessing Authority still imposed a penalty under Section 78(5) of the Act. The Dy. Commissioner (Appeals) Commercial Taxes later set aside this penalty, leading to the appeal by the Revenue and subsequent dismissal by the Rajasthan Tax Board.

4. Compliance with Section 78(2) of the Act:
The Rajasthan Tax Board based its decision on the submission of the declaration form ST18C along with the reply to the show cause notice, considering it as compliance with Section 78(2) of the 1994 Act. This interpretation was supported by a judgment of the Hon'ble Supreme Court in the case of State of Rajasthan Vs. D.P. Metals.

5. Judgment and Dismissal of Revision Petition:
The revision petition was dismissed as the issue raised was found to be fully covered by the precedent set in the case of D.P. Metals. The Court found no substantial question of law arising from the facts of the case and upheld the decision of the Rajasthan Tax Board.

In conclusion, the judgment reaffirmed the importance of compliance with statutory requirements and upheld the decision of the lower authorities regarding the penalty under Section 78(5) of the Rajasthan Sales Tax Act, 1994.