Transit penalty under Rajasthan Sales Tax law does not require mens rea; matter remanded for fresh adjudication after hearing the assessee.

Penalty for violation of transit requirements under the Rajasthan Sales Tax Act, 1994 does not require proof of mens rea under Section 78(5); the relevant enquiry is whether there was contravention of the statutory transit obligation under Section 78(2)(a), and whether the assessee was given an opportunity to produce the required documents under Rule 55(1) of the Rajasthan Sales Tax Rules, 1995. Applying that settled position, the HC set aside the orders passed below and remitted the matter for fresh adjudication by the assessing authority after hearing the assessee.

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Issues: Whether the revision petition deserved disposal by setting aside the orders below and remanding the matter for fresh adjudication in light of the settled law on penalty for violation of transit requirements under the Rajasthan Sales Tax Act, 1994.

Analysis: The revision was considered against the backdrop of the settled position that, for penalty under Section 78(5), proof of mens rea is not necessary and that the enquiry concerns contravention of the statutory transit requirement under Section 78(2)(a), with the assessee being afforded an opportunity to produce the requisite documents under Rule 55(1) of the Rajasthan Sales Tax Rules, 1995. On that basis, the impugned orders of the authorities below were found liable to be set aside and the matter required fresh consideration by the assessing authority after hearing the assessee.

Conclusion: The revision petition was allowed to the extent of setting aside the orders below and remitting the matter for fresh decision by the assessing authority.

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