STATE OF RAJASTHAN AND OTHERS vs GHASILAL

The Supreme Court held that penalties imposed under Section 16(1)(b) of the Rajasthan Sales Tax Act, 1955, could not be sustained as there was no breach of the statutory provisions. The Court clarified that until the tax payable was ascertained by the assessing authority under Section 10 or by the assessee under Section 7(2), no tax could be considered due. Additionally, Rule 31 of the Rajasthan Sales Tax Rules applies only after an assessment is completed, and Section 7(2) cannot be invoked until returns are filed by the assessee.