Penalty for technical breach requires nexus with tax evasion; later production of declaration form defeated the levy.

Penalty under Section 78(10)(a) of the Rajasthan Sales Tax Act, 1994 is not automatic for a technical breach; it depends on whether the default has a real nexus with tax evasion or avoidance. Where the declaration form ST-18C was later produced before the Assessing Officer in response to a show-cause notice, and no intention to evade tax was established, the penalty is unsustainable. The cited principle also treats penalty as unwarranted when the vehicle carries the requisite documents and the material does not show evasion.

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Issues: Whether penalty under Section 78(10)(a) of the Rajasthan Sales Tax Act, 1994 was sustainable where the declaration form was later produced and there was no established nexus with tax evasion.

Analysis: The declaration form ST-18C was produced before the Assessing Officer on a show-cause notice. The governing principle is that penalty under the provision is not to be imposed mechanically for every technical breach; it depends on whether the breach has a nexus with evasion or avoidance of tax. The cited precedent applied the same rule and also treated penalty as unsustainable where the vehicle carried the requisite documents and no intention to evade tax was shown.

Conclusion: The penalty was not sustainable, and the challenge to its deletion failed.

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