Actual seizure required for penalty on unaccounted goods under the Rajasthan Sales Tax Act; mere finding was insufficient.

Penalty for possession of unaccounted goods under section 22(6) of the Rajasthan Sales Tax Act, 1954 was held to depend on actual seizure of the goods. Reading clauses (a), (b) and (c) together, the provision was construed as requiring seizure as a condition precedent to penalty, with the phrase "whether seized or not" treated as confirming that legislative scheme. Where unaccounted goods were found but not actually seized, the penalty was not sustainable.

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Issues: Whether penalty under section 22(6) of the Rajasthan Sales Tax Act, 1954 could be imposed where unaccounted goods were found but were not actually seized.

Analysis: The scheme of section 22(6) was read as a whole. Clause (a) gives power to seize goods not accounted for, clause (b) authorises penalty for possession of such goods, and clause (c) deals with release of seized goods on payment of penalty or security. The insertion of the words "whether seized or not" in clause (b) was treated as an aid to construction showing the legislative intent. On that interpretation, the expression "power to seize" in clause (a) was held to contemplate actual seizure, and the consistent view taken by the Board was approved.

Conclusion: Actual seizure of the unaccounted goods was an essential pre-condition for imposing penalty under section 22(6), and in the absence of such seizure the penalty was not sustainable.

Ratio Decidendi: Under section 22(6) of the Rajasthan Sales Tax Act, 1954, penalty for possession of unaccounted goods is not leviable unless the goods are actually seized.

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