Assistant Commercial Taxes Officer vs M/S Bajaj Electricals Ltd

The Supreme Court held that the imposition of penalty under Section 78(5) of the Rajasthan Sales Tax Act, 1994 was improper as the cause of action arose prior to the amendment of the section on 22.3.2002, thus making the amended provisions inapplicable. The Court emphasized that the intention to evade tax must be established for imposing penalties, which was not demonstrated in this case. Consequently, the Court upheld the Rajasthan Tax Board's decision to set aside the penalty imposed by the Assessing Officer.