Contractual movement of goods for installation is not tax evasion when ownership has already passed to the purchaser.

Penalty and tax under section 76 of the Rajasthan VAT Act were held unsustainable where documentary evidence showed that goods had already been supplied to JVVNL and had become its property at Jaipur, and their subsequent movement within the State was only for erection, installation and commissioning under the contract. In that situation, the absence of a declaration form did not, by itself, justify an inference of tax evasion. The court treated the authorities' approach as unduly technical because the record established both ownership and the contractual purpose of transport, so movement for installation could not be equated with evasion-related transportation.

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Issues: Whether penalty and tax could be levied under section 76 of the Rajasthan Value Added Tax Act, 2003 when the goods had already been supplied to JVVNL and were being transported only for installation and commissioning at different sites without a declaration form.

Analysis: The tender documents and certificates on record showed that the material was supplied to JVVNL and, after supply at Jaipur, became its property. The further movement of goods within the State was only to facilitate erection, installation and commissioning at various sites under the contract. In that situation, the absence of a declaration form did not justify treating the transportation as one intended for tax evasion, and the authorities below had adopted an unduly technical view of the transaction.

Conclusion: The levy of penalty and tax under section 76 was not sustainable and the finding of the Tax Board was liable to be interfered with in favour of the assessee.

Ratio Decidendi: Where goods are already supplied to the purchaser and are moved only for contractual installation or commissioning, such transport cannot be treated as transport with intent to evade tax merely because a declaration form was not produced, if the documentary record establishes the purchaser's ownership and the purpose of movement.

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