Transit of goods through Rajasthan did not justify penalty where no delivery in the State or evasion was established.

Penalty under section 78(5) of the Rajasthan Sales Tax Act was held inapplicable where goods were found merely transiting through Rajasthan and were not intended for delivery in the State. The appellate authorities' factual finding that the bills and vouchers were substantially in order meant that a minor omission, such as a missing CST number entry, did not by itself support a presumption of local delivery or tax evasion. On that evidentiary basis, no legally sustainable ground existed to impose penalty, and revision interference was unwarranted. The revision was dismissed because the concurrent findings established only transit through the State.

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Issues: Whether penalty under section 78(5) of the Rajasthan Sales Tax Act, 1994 could be imposed when the goods were found to be in transit through Rajasthan and not meant for delivery in the State, and whether any question of law arose from the Tax Board's order.

Analysis: The vehicle was found carrying goods from one State to another through Rajasthan. The appellate authorities recorded a factual finding that the consignment was not intended for delivery in Rajasthan and that the bills and vouchers were substantially in order. On those facts, mere absence of one CST number entry or other minor discrepancy did not justify a presumption of local delivery or tax evasion within Rajasthan. Where goods are only transiting through the State, the power to impose penalty under the Rajasthan Sales Tax Act does not arise, and interference in revision is unwarranted when the conclusion rests on appreciation of evidence.

Conclusion: Penalty under section 78(5) was not exigible, and the revision petition failed.

Final Conclusion: The revision was dismissed because the concurrent factual findings showed only transit through Rajasthan and no legally sustainable basis for penalty.

Ratio Decidendi: No penalty can be imposed under the Rajasthan Sales Tax Act for goods merely transiting through the State when the finding is that they were not intended for delivery in Rajasthan and no evasion within the State is established.

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