State Of Rajasthan & Anr vs M/S D.P. Metals

The Supreme Court upheld the Rajasthan High Court's decision declaring Section 78(5) of the Rajasthan Sales Tax Act, 1994 unconstitutional, as it was found to be beyond the legislative competence of the State and violative of Articles 14, 19(1)(g), 301, and 304 of the Constitution. The Court emphasized that the penalty provisions must allow for a reasonable opportunity to contest the imposition of penalties, particularly in cases of bona fide defaults. The judgment clarified that the requirement for carrying certain declarations by transporters is not mandatory and substantial compliance is sufficient.