ASSISTANT COMMISSIONER Vs. C.P. AGRO INDUSTRIES

JUDGEMENT

(1.) A challenge in the instant petition filed by the petitioner-Assistant Commissioner, Commercial Taxes under Sec. 84 of the Rajasthan Value Added Tax Act, 2003 (for short 'the RVAT Act, 2003') read with Sec. 86 of the Rajasthan Sales Tax Act, 1994 has been made to the order dtd. 9/5/2017 passed by the Rajasthan Tax Board, Ajmer [for short 'the Tax Board'] in appeal No. 1403/2011/Bharatpur whereby the Tax Board while allowing the appeal filed by the respondent - assessee (hereinafter referred as 'the assessee') set aside the penalty imposed under Sec. 61 of the RVAT Act, 2003.

(2.) The issue involved in this petition is 'Whether the Rajasthan Tax Board has committed an error of law in setting aside the order of imposition of penalty despite the fact that the tax and interest imposed by the petitioner- Assistant Commissioner Commercial Tax has been upheld and the Form-C was found to be fake and forged?'

(3.) Brief facts of the case are that the assessee is engaged in the business of mustard oil. It was found by the Assessing Officer that the assessee sold mustard oil against declaration Form-C to the firms of Bihar. The assessee also claimed the refund as contemplated under Sec. 17(2) of the RVAT Act, 2003. During the course of inquiry, it was found that the declaration Form-C which was submitted by the assessee, was fake and forged and it was also found that a racket was using false, fake and forged declaration forms. A massive inquiry was conducted of various assessees and an opportunity of hearing was given to the respondent- assessee to show cause as to why tax, interest and penalty under Sec. 61 of the RVAT Act, 2003 be not imposed upon him. The assessee submitted its reply which was considered by the Assessing Officer and after considering the documents available on record, the Assessing Officer imposed tax, interest and penalty under Sec. 61 of the Act in the assessment order passed under Sec. 9 of the C.S.T. Act read with Ss. 24, 55 and 61 of the RVAT Act, 2003 vide order dtd. 31/3/2010.