Judgment

Kirpal, J.—The State of Rajasthan has filed these appeals against the decision of the High Court which had, while allowing the Writ Petition of the respodents, held that Section 78(5) of the Rajasthan Sales Tax Act, 1994 was unconstitutional and ultra vires.

2. In order to examine the issues arising in this case, we may briefly refer to the facts of the case of M/s D.P. Metals. M/s D.P. Metals carries on the business of manufacturing stainless steel sheets and had been registered under the provisions of the Rdjasthan Sales Tax Act and the Central Sales Tax Act. On 22nd January, 1997 a truck was seized by the Assistant Commercial Taxes Officer, Jodhpur and as the same was found not to be carrying the declaration Form ST 16A, a show cause notice was issued to M/s D.P. Metals. After hearing, a penalty of Rs. 63,200/- was levied under Section 78(5) of the 1994 Act.

3. M/s D.P. Metals and other dealers, against whom similar action has been taken, filed applications before the Rajasthan Taxation Tribunal, Jaipur, inter alia, impugning the provisions of Section 78 (5) of the 1994 Act and claimed consequential relief of the quashing of the penalty order.

4. Pursuant to the abolition