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Issues: (i) Whether penalty under section 22A(7) of the Rajasthan Sales Tax Act, 1954 could be avoided on the ground that the goods were being carried by the owner as a passenger and were not goods under transport. (ii) Whether the importer's failure to carry the prescribed declaration under section 22C of the Rajasthan Sales Tax Act, 1954 justified restoration of the assessing authority's order.
Issue (i): Whether penalty under section 22A(7) of the Rajasthan Sales Tax Act, 1954 could be avoided on the ground that the goods were being carried by the owner as a passenger and were not goods under transport.
Analysis: Explanation II to section 22A treats goods under transport as goods handed over to a carrier and remaining with the carrier until delivery is taken. The provision governing goods carried in a vehicle, boat or animal is directed to transport situations and not to a passenger carrying his own goods personally without using a transporter. On the admitted facts, the respondent was carrying the goods himself and not through a carrier, so the goods did not fall within the statutory concept of goods under transport.
Conclusion: The narrow ground on which the penalty was deleted under section 22A(7) was not sustainable.
Issue (ii): Whether the importer's failure to carry the prescribed declaration under section 22C of the Rajasthan Sales Tax Act, 1954 justified restoration of the assessing authority's order.
Analysis: Section 22C casts the obligation to obtain and carry the prescribed declaration on the importer bringing notified goods into the State for use, consumption or disposal within the State. The statutory duty is not on a transporter in such a case. The respondent admitted bringing the goods from outside the State without documents or declaration for sale within the State, showing deliberate non-compliance with the entry declaration requirement and an intention to evade tax.
Conclusion: The failure to comply with section 22C was established, and the assessing authority's action was rightly restored.
Final Conclusion: The revision succeeded, the appellate orders were set aside, and the penalty order of the assessing authority was restored on the basis that the respondent, as importer, had violated the declaration requirement and could not claim the benefit of the transport-based objection.
Ratio Decidendi: Goods under transport means goods handed over to a carrier and remaining in the carrier's custody, and where goods are personally carried by the importer without transport agency involvement, the declaration obligation under section 22C rests on the importer and non-compliance can sustain penalty action.
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