Sufficient cause for missing a check-post declaration form can defeat penalty when the finding is factual and untainted by legal error.

The Tribunal was justified in setting aside penalty under section 22A of the Rajasthan Sales Tax Act, 1954 where the declaration form was not produced at the check-post, but the assessee showed sufficient cause for the omission. The Tribunal relied on the earlier view treating rule 62A as ultra vires and recorded factual satisfaction that this influenced the assessee's conduct. The High Court treated sufficient cause as a question of fact and held that, once the Tribunal reached that conclusion, the revisional court would not interfere absent jurisdictional error or other legal infirmity. The penalty was therefore upheld as deleted and the revision failed.

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Issues: Whether the Tribunal was justified in setting aside the penalty levied under section 22A of the Rajasthan Sales Tax Act, 1954 on the ground that there was sufficient cause for not submitting the declaration form at the check-post.

Analysis: The Tribunal found that the declaration form was not produced when the goods were intercepted at the check-post, but it also recorded that the earlier view treating rule 62A as ultra vires had influenced the assessee's conduct and that, in the circumstances, there was sufficient cause for the omission. The High Court treated the existence of sufficient cause as a question of fact. Once the Tribunal had reached a factual satisfaction on that point, the revisional court would not interfere unless a jurisdictional error or other legal infirmity was shown.

Conclusion: The setting aside of the penalty was upheld and the revision was dismissed, in favour of the assessee.

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