Mens rea not required for penalty under sales tax declaration rules when overwritings and cuttings make the form defective.

Penalty under section 78(5) of the Rajasthan Sales Tax Act was treated as sustainable where the declaration form contained overwritings and cuttings in multiple columns, and the explanation of clerical or human error was found inadequate. The analysis follows the larger bench view that, once violation of section 78(2) is established, mens rea is not required for penalty, and the amendment to rule 55 of the Rajasthan Sales Tax Rules did not introduce any mens rea requirement. The defects were regarded as making the declaration false or fabricated, bringing it within the penalty provision and supporting the Revenue's case.

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Issues: Whether penalty under section 78(5) of the Rajasthan Sales Tax Act, 1994 could be sustained for overwritings and cuttings in the declaration form without proof of mens rea.

Analysis: The question was decided in the light of the larger bench view that mens rea is not relevant for liability to penalty under section 78(5) once violation of section 78(2) is established, and the amendment to rule 55 of the Rajasthan Sales Tax Rules, 1995 does not require adjudication of mens rea. On the facts, the declaration form contained overwritings and cuttings in several columns, and the explanation of human or clerical error was found insufficient. The defects were treated as showing a false or fabricated declaration and bringing the case within the mischief of the penalty provision.

Conclusion: Penalty under section 78(5) was held to be exigible and the deletion of penalty by the appellate authorities was set aside, in favour of the Revenue.

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