- (1.) These two writ petitions directed against the similar nature orders dated 10.04.2006 (Annex. 6 in the respective writ petitions) passed by the Rajasthan Tax Board, Ajmer, ('the Tax Board' hereafter) involving common questions of law and facts were heard together and are taken up for disposal by this common order.
(2.) The petitioner has submitted two appeals under Section 85 of the Rajasthan Sales Tax Act, 1994 ('the Act' hereafter) before the Tax Board against the common order dated 27.03.2006 passed by the Deputy Commissioner (Appeals), Commercial Taxes, Bhilwara upholding the levy of penalty imposed under Section 64 of the Act in relation to two assessment years 1999-2000 and 1998-1999 respectively. By the impugned orders dated 10.04.2006, the Division Bench of the Tax Board has though proceeded to admit the respective appeals but rejected stay applications submitted by the petitioner. The impugned orders dated 10.04.2006 are similar in nature in both the cases and for reference, the order (Annexure-6) in Writ Petition No.2053/2006 could be reproduced as under:-
(3.) Assailing the orders aforesaid, the petitioner has submitted in these writ petitions the background facts leading to the aforesaid appeals. However, in view of the short point involved in these writ petitions and the merit of the case being not the subject matter of consideration herein, suffice only to notice that the appeals aforesaid have been submitted against the common orders dated 27.03.2006 (Annex.4) passed by the Deputy Commissioner (Appeals) whereby the learned Deputy Commissioner has upheld imposition of penalty under Section 64 of the Act against the petitioner. The order imposing penalty dated 16.12.2005 (Annex.3) was passed by the Commercial Taxes Officer, Anti-Evasion, Bhilwara on the consideration that upon inspection on 31.03.2000 and 02.08.2000, it was noticed that the petitioner was a 100% export oriented unit exporting blended woolen fabric. In terms of the Notification dated 13.06.2004 issued under Section 4(2) of the Act, Government exempted from tax the sale to or purchase by such export oriented units of the raw material required by them for specific period and subject to the conditions mentioned therein. The said Notification required the unit concerned to issue declaration in Form ST-17; and in terms of the said Notification, the units having fixed capital investment of Rs.15 crores or more were entitled to 100% exemption of tax; and the units having investment between Rs.5 crores to less than Rs.15 crores were eligible for 50% exemption. The learned Commercial Taxes Officer, Anti- Evasion found that the petitioner was entitled only to 50% exemption and yet proceeded to obtain 100% tax exemption and the attempt to obtain such illegal advantage was in direct violation of the requirements of the Act.;