Tax Board's Orders Quashed for Unjustified Circular Reliance

The judge allowed the petition and quashed the Tax Board's orders, finding the authorities' reliance on Circulars unjustified and deeming the reasoning for goods being with the transporter reasonable.

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Issues:
Challenge to order of Rajasthan Tax Board dismissing petitioner's appeals.

Analysis:
1. The petitions challenged the Rajasthan Tax Board's order dismissing petitioner's appeals.
2. A survey revealed the petitioner's business activities involving inter State trade and commerce.
3. The Assessing Officer found discrepancies in the timing of goods transfer and tax payments by the petitioner.
4. The AO relied on Circulars by the Commissioner to impose tax, surcharge, and penalty.
5. The matter was remanded by the Dy. Commissioner but the decision remained unchanged.
6. The Dy. Commissioner (Appeals) and Tax Board upheld the tax and penalty imposition.
7. Petitioner contended that authorities' reliance on Circulars was unjustified.
8. The petitioner cited a judgment where similar Circulars were quashed.
9. Respondent argued that constructive delivery had occurred, justifying tax imposition.
10. The judge considered arguments and previous judgments, including the quashing of Circulars.
11. The judge referenced a previous case where Circulars were deemed ultra vires.
12. The judge found the authorities' reliance on the Circulars unjustified.
13. The judge deemed the reasoning for goods being with the transporter reasonable.
14. Consequently, the judge allowed the petition and quashed the Tax Board's orders.

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