Penalty for missing transit form cannot stand when stock transfer goods moved before compliance became mandatory.

Penalty under section 78(5) of the Rajasthan Sales Tax Act was not sustainable for non-carrying of Form ST-18A where stock-transfer goods were moved before the 20.03.2000 notification made that form mandatory. The relevant transit on 22.10.1997 was governed by the pre-notification position, so the absence of Form ST-18A alone could not justify penalty when the other documents were in order. On those facts, deletion of the penalty was consistent with law and stood in favour of the assessee.

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Issues: Whether penalty under section 78(5) of the Rajasthan Sales Tax Act, 1994 could be imposed for non-carrying of Form ST-18A in respect of stock transfer goods moved prior to the notification dated 20.03.2000, and whether the absence of that form in the vehicle justified the levy.

Analysis: The goods were admittedly transported as stock transfer/branch transfer on 22.10.1997, which was prior to the notification dated 20.03.2000 that made production of Form ST-18A applicable in such cases. The relevant law did not require the form to be carried for such movement before that date. Since the driver had all other documents in order and the omission related only to Form ST-18A, the penalty could not be sustained on these facts. The earlier orders deleting the penalty were found to be in accordance with law.

Conclusion: Penalty under section 78(5) was not leviable, and the deletion of penalty was upheld in favour of the assessee.

Ratio Decidendi: Where the law did not require a declaration form to be carried at the time of transit, penalty cannot be imposed merely for its non-production, especially when the movement of goods occurred before the relevant notification made such compliance mandatory.

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