AIR 1968 RAJASTHAN 188 ::ILR (1968) 18 Raj 389

Rajasthan High Court

Hon'ble Judge(s): D. S. Dave , C.J. AND Kan Singh , J

(A) Rajasthan Sales Tax Act (29 of 1954) , S.22(6), S.22(2), S.22(4), S.3, S.7— Rajasthan Sales Tax Rules (1955) , R.15— Sales Tax - Validity of S.22(6) - , R.25, R.29 - S.22(6) in effect provides for determination of tax before accrual of any liability - S.22(6) is repugnant to scheme of Act and is, therefore, bad. Madras General Sales Tax Act (1 of 1959) , S.41(4)— In the Rajasthan Act there is no provision for the payment of tax as such unlike Sub-Sec. (4) of S. 41 of the Madras General Sales Tax Act yet in substance there is no difference between the two provisions. S. 22(6) of the Rajasthan Sales Tax Act is mandatory for the assessing authority or the authorised person to give the dealer an option to pay in lieu of confiscation such amount not exceeding four times the tax which would be due on such goods as may be determined by such authority. Tax can @page-Raj189 not be determined without there being the taxable event namely, the sale. The unit of measure of penalty at four times the tax that would be due is uncertain in the extreme as it cannot be predicated easily as to whether any tax would at all be realisable on any given set of goods and if it is overdue then how much. Sales-tax is not a tax on goods as such, but is a tax on taxable turnover, that is, on the aggregate of sales for a particular period i....