Mandatory transit declaration forms and strict civil penalty rules upheld for failure to produce ST-18A during goods movement.

Non-carrying and non-production of declaration Form ST-18A for taxable goods in transit justified penalty under Section 78(5) of the Rajasthan Sales Tax Act, 1994. The mandatory nature of the declaration form under Section 78(2) read with Rule 53 meant that failure to produce it at interception or after notice constituted a serious contravention. The Court further noted that, even before the 22.03.2002 amendment, the provision was wide enough to cover the owner and that the penalty was a civil liability not dependent on mens rea. The explanations offered were found untenable, and the penalty was held rightly leviable.

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Issues: Whether non-carrying of declaration Form ST-18A and failure to produce it despite notice justified penalty under Section 78(5) of the Rajasthan Sales Tax Act, 1994, and whether such penalty could be imposed on the owner prior to 22.03.2002.

Analysis: The vehicle was intercepted while transporting taxable goods, but the declaration Form ST-18A was not produced at the time of interception or in response to the show-cause notice. The Court relied on the settled position that Section 78(2) of the Rajasthan Sales Tax Act, 1994 read with Rule 53 of the Rajasthan Sales Tax Rules, 1995 makes the declaration form mandatory for movement of goods. It also noted that the Supreme Court had held that, even before the amendment of 22.03.2002, the expression used in Section 78(5) was wide enough to include the owner and that penalty for such contravention is a civil liability, for which mens rea is not essential. The Court further held that the explanations offered were untenable on the facts and that the non-production of the form was a serious infirmity.

Conclusion: Penalty under Section 78(5) was rightly leviable on the assessee and the contrary view of the Tax Board was unsustainable.

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