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. The Court emphasized that the responsibility for the Declaration Form ST 18A lies with the transporter and consignor, and the absence of the form was due to an oversight rather than an intention to evade tax. Consequently, the penalty imposed was set aside, affirming the Rajasthan Tax Board's decision.