Broad meaning of "person in-charge of goods" under sales tax law includes the owner and supports transit penalty liability.

The Supreme Court construed Section 78(5) of the Rajasthan Sales Tax Act, 1994 with Rule 53 of the Rajasthan Sales Tax Rules, 1995 and held that the expression "person in-charge of the goods" is wide enough to include the owner of the goods. It reasoned that the statutory scheme places the declaration obligation on the purchasing dealer, that the owner is entitled to seek release of the goods and be heard in the penalty enquiry, and that the later 2002 amendment was a substitution clarifying the earlier position. On that interpretation, penalty could be levied on the owner, the High Court's contrary view was incorrect, and the penalty order was restored.

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Issues: Whether penalty under Section 78(5) of the Rajasthan Sales Tax Act, 1994 could be levied on the owner of the goods or the person in charge of the goods, and whether the High Court was right in setting aside the penalty.

Analysis: The appeal turned on the interpretation of Section 78(5) read with Rule 53 of the Rajasthan Sales Tax Rules, 1995. The Court followed its earlier view that the expression "person in-charge of the goods" was wide enough to include the owner of the goods, since the statutory scheme placed the obligation to furnish the declaration on the purchasing dealer and the owner was the person entitled to seek release of the goods and to be heard in the enquiry. The subsequent amendment by Act No. 7 of 2002 was treated as a substitution clarifying the earlier position, and the older provision was also read consistently with the scheme of penalty for goods not properly covered in transit.

Conclusion: The owner of the goods fell within the scope of Section 78(5), and the High Court erred in holding otherwise.

Final Conclusion: The appeal succeeded, the High Court's order was set aside, and the penalty order was restored.

Ratio Decidendi: Under Section 78(5), the expression "person in-charge of the goods" includes the owner of the goods, and penalty may be levied accordingly.

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