Transit document irregularity is only a technical defect when declaration and supporting papers exist, barring penalty.

Penalty for carrying an unfilled S.T. 18A declaration form with transit goods was not automatic under section 78(5) of the Rajasthan Sales Tax Act, 1994. The provision required notice and a hearing, and the Court treated the omission of some particulars as a procedural lapse where the goods were otherwise supported by bills, bilty and a signed declaration form. In the absence of material showing mens rea to evade tax, the defect could not justify penal action, and vicarious liability could not be fastened on the consignee. The Tribunal's deletion of penalty was therefore upheld.

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Issues: Whether penalty was leviable for carrying an unfilled declaration form S.T. 18A with goods in transit under section 78(5) of the Rajasthan Sales Tax Act, 1994.

Analysis: Section 78(5) requires notice and opportunity of hearing before penalty, and the provision is not one of automatic levy merely because goods are found without complete documents. The declaration form S.T. 18A is meant to be furnished by the consignee, but many particulars in the form can be filled only after the consignor has dispatched the goods and accompanying particulars. Where the goods were otherwise accompanied by bills, bilty and the signed declaration form, the omission to fill in certain particulars was held to be, at most, a procedural lapse. In such circumstances, no inference of mens rea to evade tax could be drawn, and the default could not be fastened vicariously on the consignee.

Conclusion: Penalty under section 78(5) was not leviable; the revision failed and the assessee succeeded.

Final Conclusion: The Tribunal's deletion of penalty was upheld, as the defect in the declaration form was treated as a technical and procedural irregularity rather than a penal breach.

Ratio Decidendi: Penalty for irregularities in transit documents is not automatic; where the substantive declaration is present and the omission is only a technical or procedural defect without evidence of mens rea to evade tax, penalty cannot be sustained.

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