Court affirms ACTO's payment obligation for seized goods under Rajasthan Sales Tax Act

The High Court affirmed the obligation of an Assistant Commercial Tax Officer (ACTO) to make payment for seized goods under section 83(1) of the Rajasthan Sales Tax Act, 1994. The court dismissed the appeal, allowing the State to recover the purchase price from the ACTO who issued the notice. The court directed the appellants to pay the purchase price determined for penalty levy to the respondent, pending the appeal outcome on penalty levy under section 78(5). The High Court clarified the payment and recovery directions, rendering the appeal on section 83 infructuous while the appeal on section 78(5) proceedings continued.

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Issues:
1. Interpretation of sections 78(4) and 83(1) of the Rajasthan Sales Tax Act, 1994.
2. Obligations of Assistant Commercial Tax Officer (ACTO) in seizing goods.
3. Payment obligations under section 83(1) of the Act.
4. Appellate authority's jurisdiction in penalty levy matters.
5. Applicability of section 83(2) regarding sale of goods to ACTO.
6. High Court's direction on payment of purchase price and penalty levy.

Analysis:
1. The case involved the transportation of dry fruits where the respondent's goods were seized, leading to a penalty demand by the Assistant Commercial Tax Officer (ACTO) under sections 78(4) and 83(1) of the Rajasthan Sales Tax Act, 1994. The ACTO also directed the release of goods with a disclaimer of no liability if goods were spoiled. The respondent challenged this order through appeal and a writ petition, highlighting non-payment despite the issuance of notice under section 83(1).

2. The division Bench emphasized the separation of proceedings under sections 78 and 83, stating that upon issuing a notice under section 83(1), the ACTO was obligated to make payment for the seized articles. The appeal by the appellants against this order was dismissed, affirming the obligation to make payment under section 83(1) and allowing the State to recover the purchase price from the ACTO who issued the notice.

3. The appellants contended that the appeal was pending, but without a stay on the ACTO's order, section 83(2) mandated the dealer to sell goods to the ACTO. Failure to comply attracted further penalties. The High Court directed the appellants to pay the purchase price determined for penalty levy to the respondent, with the right to set apart the penalty amount pending the appeal outcome on section 78(5).

4. The High Court's decision limited the appeal scope to the penalty levy under section 78(5), setting aside the liberty given to the State to recover the purchase price from the ACTO personally. Consequently, the respondent's appeal on section 83 became infructuous, while the appeal on section 78(5) proceedings continued. The direction on payment and recovery was clarified, and the appeal was disposed of accordingly.

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