Improper use of a declaration form justified sales tax penalty where cuttings, overwritings, and reuse were found

Penalty under section 78(5) of the Rajasthan Sales Tax Act was upheld because the declaration form produced at interception bore cuttings and overwritings and was found to be a reused form. The prior Tax Board view supporting relief had already been overruled by the Supreme Court, so the later production of a fresh declaration form did not cure the original defect. On the material recorded, improper use of the declaration form justified penalty and the assessee was denied relief.

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Issues: Whether penalty under section 78(5) of the Rajasthan Sales Tax Act, 1994 was justified where the declaration form contained cuttings and overwritings and was found to have been reused.

Analysis: The declaration form produced at the time of interception contained cuttings and overwritings, and the authorities had recorded a finding that it was an earlier used form presented again. The earlier view of the Tax Board on which the appellate relief had been based had already been overruled by the Supreme Court. In the circumstances, the fresh declaration form produced later could not cure the initial defect, and the material on record supported the inference of improper use of the declaration form attracting penalty.

Conclusion: Penalty under section 78(5) was rightly upheld and the assessee was not entitled to relief.

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