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2015 (3) TMI 593 - HC - VAT and Sales TaxLevy of penalty on the respondent-assessee under Section 76(6) of the Rajasthan VAT Act, 2003 - Evasion of tax - Malafide intention - Held that:- As the goods in transit were accompanied by all requisite documents under Section 76(2)(b) of the Act of 2003, the mere incident of the documents not being as the Assistant Commercial Taxes Officer, Flying Squad, Bharatpur thought they ought to have been, was not an occasion for levy of penalty. The question of nature of transaction is a matter to be considered in the regular assessment proceeding and where the nature of transaction was improper in law such transaction could have been discarded and requisite tax levied in regular assessment proceedings. Admittedly, the goods in transit were tax paid and even otherwise the respondent-assessee could have made the transfer of goods by way of stock transaction without paying any tax whatsoever. The ACTO, Flying Squad, Bharatpur could at best have referred the matter to the regular assessing authority but could not himself travel beyond his jurisdiction to pontificate on the issue of the irregularity of an inter-state sale being made by the respondent-assessee's Alwar office to its Morena office. This was beyond his jurisdiction. The overall context of the factual situation obtaining on the record of the case is indicative of a complete absence of any intent to evade the tax. - Decided against Revenue.
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