1985 (10) TMI 270

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....default on the part of the dealer under rule 25C was established, yet it only constituted a technical breach and may be overlooked?" The question is said to arise out of the order dated March 14, 1978, passed in Special Appeal No. 121/74/ST/Pali, which the Board refused to do by its order dated November 15, 1978. The reference was pending on May 1, 1985, the date on which the Rajasthan Sales Tax (Amendment) Act, 1984 (No. 20 of 1984) (for short "the Amendment Act"), came into force. According to section 13(11) of the Amendment Act, this reference has been treated and heard as a revision under section 15 of the Rajasthan Sales Tax Act, 1954 (No. 29 of 1954) (for short "the Act"), as substituted by the Amendment Act. The dealer-assessee....

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.... reference is being disposed of as a revision under section 15 of the Act, as substituted by the Amendment Act. We heard Mr. K.C. Bhandari, learned counsel for the C.T.O., as nobody appeared on behalf of the dealer-assessee. Rule 25C of the Rajasthan Sales Tax Rules, 1955 (for short "the Rules"), as it stood then, read as under: "25C. Furnishing of declaration.-(1) A dealer who is entitled to and claims  (i) exemption from payment of tax; or (ii) payment of tax at a concessional rate; (a) on sales made to a registered dealer of goods taxable at the last point for the purpose of- (i) resale within the State; or (ii) sale in the course of inter-State trade or commerce; or (iii) sale in the course of export out ....

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....form S.T. 17 is only a technical breach, for, in that case, there cannot be the intention of the registered dealer to evade the sales tax, which is leviable and imposable under the Act. Section 16 of the Act deals with offences, penalties and prosecutions, etc. For breach of rule 25C of the Rules, penalty can be imposed on the dealerassessee. Penalty is not imposable merely because it is lawful to do so. Whether penalty should be imposed for failure to perform a statutory obligation or for default in not complying with the provisions of the Act or the Rules is a matter of discretion to be exercised judicially and on a consideration of all the relevant circumstances. The authority competent to levy penalty can refuse to impose the penalty wh....