Strict construction of fiscal law barred penalty for missing declaration form before it was prescribed

Penalty for non-production of a declaration form under the Rajasthan Sales Tax Act, 1954 could not be sustained where the relevant form under section 22C had not yet been prescribed on the date of interception. The Tribunal treated the import as falling under section 22C and applied strict construction of fiscal statutes, holding that liability cannot arise by inference or analogy. Because the prescribed form came into force only after the vehicle was seized, the omission to carry or produce it did not constitute an offence or justify penalty. The penalty was set aside and any recovered amount was directed to be refunded with interest.

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Issues: Whether penalty could be imposed for non-production of declaration forms under the Rajasthan Sales Tax Act, 1954 when the applicable declaration form under section 22C had not yet been prescribed.

Analysis: The import of the open chassis was held to fall under section 22C of the Rajasthan Sales Tax Act, 1954, not section 22A. Under section 22C, an importer was required to obtain and carry the prescribed form of declaration, but the prescribed form came into existence only on 26 May 1987, whereas the vehicle was seized on 9 April 1987. The Tribunal applied the settled rule that fiscal statutes must be construed strictly, and that liability cannot be created by inference or analogy. Since the statutory form was not yet prescribed on the date of interception, the omission to carry or produce that form could not constitute an offence or justify penalty.

Conclusion: The penalty was unsustainable and was set aside, with consequential refund of any amount recovered together with interest.

Final Conclusion: The writ petition succeeded and the impugned penalty was annulled on the ground that no enforceable declaration form under section 22C existed on the relevant date.

Ratio Decidendi: Where compliance with a taxing provision depends on a prescribed form or similar statutory requirement, no penalty can be imposed for non-compliance before that requirement is validly prescribed; fiscal provisions must be applied strictly according to their express terms.

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