TMI Blog2004 (5) TMI 554X X X X Extracts X X X X X X X X Extracts X X X X ..... stration for the assessment year 1991-92 under section 7(2) of the Act. The assessing authority initiated penalty proceeding under section 10-A of the Act on the ground of misuse of form C. The case of the department is that the dealer purchased electronic weigh bridge with P.C. computer system with keyboard and monitor by unauthorisedly issuing forms C Nos. 309775 and 379774. The dealer was not authorised to purchase these two items at the concessional rate of tax against form C. In reply to the show cause notice the stand of the dealer was that there is no misuse of form C and the aforesaid goods were purchased by issuing form C, as the dealer was authorised to purchase machinery against form C. The dealer treated these items covered un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h bridge in question and held it as part of the machinery used in the manufacture of the goods by the appellant. The approach of the Tribunal cannot be approved. 6.. Under section 8(3) of the Act the registered dealer and the Government can purchase goods at concessional rate, (i) the sale must be in the course of inter-State trade and commerce to the registered dealer under the Central Sales Tax Act, (ii) the sale to Government, (iii) any goods or class of goods specified in the registration certificate issued under section 7 of the Act, (iv) the goods may be for re-sale, or (v) intended for use in manufacture or processing of goods for sale, or (vi) in mining or (vii) in generation or distribution of electricity or any other form of po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of goods only. But it has also been held that the building material including lime and cement not required in the manufacture of tiles for sale cannot, however, be regarded within the meaning of rule 13, as raw material in the manufacture of processing of goods or even as plant, electrical equipments not directly connected with the process of manufacture, would not be under the aforesaid expression. Office equipment, such as fan, cooler, air-conditioning unit, would not be admissible to special rate under section 8(1) of the Act. The Tribunal has failed to examine this point in depth. The point has been dealt with before the Tribunal in cursory manner. The Tribunal being the last fact finding court, is required to record definite find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be weighed is to be put on platform/pan, a force gets applied, which means it is a machinery in common parlance. The basic principle of both kind of weighing machine is the same. The only difference is in getting final result of process of taking weight. Nonetheless electronic weighing machine is basically machine plus something more. The Full Bench decision of our Court in the case of Engineering Traders v. State of U.P. [1973] 31 STC 456; 1973 UPTC 91 has held that machinery in the generic sense would include all appliances and instruments whereby energy of force is transmitted and transformed from one point to another. The Tribunal is required to examine the matter in the light of actual expression used with regard to machinery in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son can bona fidely entertain the belief while purchasing the goods not mentioned in the registration certificate that he has authorised to purchase it at concessional rate of tax by issuing form C. Learned counsel for the dealer could not justify the finding of the Tribunal on this issue. By no stretch of imagination it can be held that action of the dealer was bona fide. The Tribunal was very much obsessed with the view that since the dealer has disclosed the purchase in the books of account and issued genuine C form the penalty cannot be levied. This approach of the Tribunal if accepted then in every case the dealer is entitled to purchase items even though not mentioned in the registration certificate at the concessional rate of tax and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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