Stock transfer declarations not mandatory before 20 March 2000, so penalty for incomplete Form ST-18-A was unsustainable.

For goods moved under stock transfer before 20 March 2000, the declaration form requirement was not mandatory, so penalty could not be imposed merely because Form ST-18-A was incomplete. The Rajasthan High Court noted that the intercepted goods were carried on stock transfer on 8 August 1995, and in light of the 20 March 2000 notification and the earlier ruling on the same point, the incomplete declaration did not attract liability under section 22A(7) of the Rajasthan Sales Tax Act, 1994. The appellate authorities were therefore justified in deleting the penalty, and that deletion was upheld.

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Issues: Whether penalty under section 22A(7) of the Rajasthan Sales Tax Act, 1994 could be sustained for an incomplete declaration form ST-18-A when the goods were under stock transfer and the transaction was prior to 20 March 2000.

Analysis: The revision concerned interception of goods carried under stock transfer on 8 August 1995 with a declaration form ST-18-A found incomplete. The Court noted that, on the admitted facts, the goods were under stock transfer and the transaction predated 20 March 2000. In view of the notification issued on 20 March 2000 and the earlier decision holding that declaration form was not required for such stock transfers before that date, the requirement to carry a declaration form was not mandatory on these facts. The appellate authorities were therefore justified in deleting the penalty.

Conclusion: Penalty under section 22A(7) could not be sustained and the deletion of penalty was upheld.

Ratio Decidendi: Where goods are moved under stock transfer prior to 20 March 2000, the declaration form requirement is not mandatory and penalty cannot be imposed merely because the form is incomplete or not carried.

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