Penalty for missing statutory declaration form not sustained where consignee had to furnish it and no tax evasion was shown.

Penalty under section 78(5) of the Rajasthan Sales Tax Act was held not leviable where the statutory declaration form was required to be furnished by the consignee, a Government department, and the record disclosed no intent to evade tax. The omission to produce form ST-18A was attributable to the consignee department, so penal action against the assessee was unjustified. The Tax Board's view that this was only a technical breach not warranting penalty was affirmed, and the revision petition failed.

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Issues: Whether penalty under section 78(5) of the Rajasthan Sales Tax Act, 1994 could be levied when the statutory declaration form was to be furnished by the consignee, a Government department, and there was no intent to evade tax.

Analysis: The goods were admittedly being supplied to the Principal Medical Officer, Tonk and the Chief Medical and Health Officer, Tonk, and the declaration form ST-18A was required to be furnished by the consignee recording the use of the goods by the Government department. The record disclosed no intent to evade tax, and no such allegation was made. In these circumstances, the omission to produce the form was attributable to the consignee department and could not justify penal action against the assessee. The Tax Board's view that the technical breach did not warrant penalty was affirmed.

Conclusion: Penalty under section 78(5) of the Rajasthan Sales Tax Act, 1994 was not leviable and the finding in favour of the assessee was upheld.

Final Conclusion: The revision petition failed and the order setting aside the penalty stood confirmed.

Ratio Decidendi: Penalty for non-production of a statutory declaration form is not sustainable where the form was required to be furnished by the consignee and the facts do not disclose any intent to evade tax.

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