Transit declaration compliance for notified goods remains mandatory even when goods are tax-paid; absence of Form ST-18C attracts penalty.

Notified goods in transit under the Rajasthan Sales Tax Act, 1994 had to be accompanied by the prescribed declaration form, and for gram (channa) moving from Rajasthan to another State, Form ST-18C was mandatory under the Rules and the 1999 notification. Tax-paid status did not remove that statutory requirement, so absence of the form constituted contravention attracting penalty under section 78(5). A natural justice objection was not available where a show-cause notice was issued, a reply was filed, and no further factual inquiry was shown to be necessary.

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Issues: Whether goods in transit, including tax-paid notified goods, were required to be accompanied by Form ST-18C under the Rajasthan Sales Tax Act, 1994 and the Rajasthan Sales Tax Rules, 1995, and whether the penalty imposed for non-compliance could be avoided on the ground of alleged breach of natural justice.

Analysis: Section 78(2)(a) of the Rajasthan Sales Tax Act, 1994 required notified goods in movement to be supported by the prescribed declaration. Rule 54(1)(ii) of the Rajasthan Sales Tax Rules, 1995, together with the notification dated March 26, 1999, specifically covered gram (channa) and made Form ST-18C mandatory for its transit from Rajasthan to another State. The fact that the goods were tax-paid did not dispense with the statutory requirement, and the absence of Form ST-18C constituted contravention attracting penalty under section 78(5). The plea of violation of natural justice also failed because a show-cause notice had been issued, a reply had been filed, and no factual dispute requiring further inquiry survived.

Conclusion: The penalty under section 78(5) was sustainable, and the orders setting it aside were erroneous.

Ratio Decidendi: Notified goods in movement must be accompanied by the prescribed declaration form irrespective of whether the goods are tax-paid, and non-production of that declaration attracts penalty under section 78(5) of the Rajasthan Sales Tax Act, 1994.

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