Penalty for alleged tax evasion requires affirmative proof; minor explained discrepancies in transport documents will not suffice.

In penalty proceedings for alleged tax evasion under section 22A(7) of the Rajasthan Sales Tax Act, the assessing authority must affirmatively prove contravention; the burden does not shift to the assessee to prove innocence. Minor discrepancies in transport documents, including differences in weight and a small amount explained by weighing bridge variation and insurance charges, are insufficient by themselves to establish evasion. Where the documents produced at the checking stage were accepted as genuine and the record did not show them to be false or an afterthought, penalty was not sustainable and the Tribunal's decision to set it aside was upheld.

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Issues: Whether the levy of penalty under section 22A(7) of the Rajasthan Sales Tax Act, 1954 was justified on the facts found by the Tribunal.

Analysis: In penalty proceedings under section 22A(7), the burden lies on the assessing authority to establish contravention and it is not for the assessee to prove innocence. The checking authority was required to verify the position from the consignor's books and other related records, especially when the consignor's entries were found to exist in the ordinary course of business. The discrepancies noticed in weight and in the amount of Rs. 150 were minor and stood explained as differences arising from weighing bridges and insurance charges. The documents produced at the time of checking were accepted by the Tribunal as genuine, and the record did not justify treating them as false or as an afterthought.

Conclusion: The penalty was not sustainable and the Tribunal was justified in setting it aside; the finding was in favour of the assessee.

Final Conclusion: No interference was called for with the Tribunal's order, and the revision failed.

Ratio Decidendi: For imposition of penalty for alleged tax evasion, the assessing authority must affirmatively prove contravention, and minor or satisfactorily explained discrepancies in transport documents do not by themselves establish an intent to evade tax.

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