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2011 (12) TMI 453 - HC - VAT and Sales TaxPenalty u/s 78(5) - Mens rea - Held that:- From the order of the appellate authority dated August 28, 2000, it is apparent that no intent to evade tax by the assessee was found in the facts of the case, it was admitted by the Revenue that the goods in transit were duly tax-paid, and the declaration form ST-18C was filed by the assessee along with its reply to the show-cause notice. The Tax Board in its order dated August 28, 2000 has held that the presence of all other documents in the course of checking of the vehicle was sufficient to prove that goods in transit were duly tax-paid, and thus no matter what intent to evade tax was absent. It was further held that on the mere unavailability of declaration form ST-18C along with other documents in the first instance a penalty under section 78(5) of the 1994 Act was mechanically applied overlooking the subsequent furnishing of the form in issue along with the reply to show-cause notice. The Tax Board relied upon the judgment of the honourable Supreme Court in State of Rajasthan v. D.P. Metals [2001 (10) TMI 881 - SUPREME COURT OF INDIA], wherein it was held that if the assessee was able to produce the relevant documents such as form ST-18C on receipt of notice, it would be sufficient compliance of law and no penalty can be imposed. As such the Tax Board upheld the order of the appellate authority whereby it set aside the order of penalty imposed upon the assessee under section 78(5) of the 1994 Act. there was no mens rea of the assessee to evade tax - Decided against Revenue.
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