Check-post seal absence held non-fatal where documents were complete, tax paid, and no intention to evade was found

Penalty under section 78(10A) of the Rajasthan Sales Tax Act was held unsustainable where the required documents under section 78(2)(b) were available and produced at the time of checking, and tax had already been paid. The absence of a check-post seal was treated as a directory, not mandatory, requirement under the statutory scheme. In the presence of complete documents, intention to evade tax could not be inferred, and the concurrent finding that there was no mens rea on the part of the assessee was accepted. No interference was called for.

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Issues: Whether penalty under section 78(10A) of the Rajasthan Sales Tax Act, 1994 was liable to be sustained when the requisite documents were available and produced at the time of checking, but the documents did not bear the check-post seal.

Analysis: The required documents contemplated by section 78(2)(b) were admittedly available and were produced at the time of checking, and the tax had already been paid. The absence of the check-post seal was held not to be a mandatory defect under the statutory scheme. The provision was treated as directory, and in the presence of all requisite documents, intention to evade tax could not be inferred. The concurrent factual finding of the appellate authorities that there was no mens rea on the part of the assessee was accepted.

Conclusion: The penalty was not sustainable and no interference was called for.

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