TMI Blog2014 (8) TMI 892X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioner has contravened the provisions of Section 10-A of the Act. Such reasoning is patently perverse and does not come within the parameters of imposition of penalty under clause (b), (c) and (d) of Section 10 of the Act. The learned standing counsel, however, submitted that penalty has been imposed under clause (d) of Section 10 of the Act, which stipulates that if a person after purchasing any goods for any of the purposes specified in clause (b), (c) or (d) of sub-Section (3) or sub-Section (6) of Section 8 fails without any reasonable excuse to make any use of goods for any such purpose in which case penalty under Section 10-A of the Act could be imposed. From a perusal of the counter affidavit that nothing has been indicated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als is found near the surface, i.e., where the over burden (surface material covering the valuable deposit) is relatively thin or the material of interest is structurally unsuitable for tunnelling. NCL have open cast mines and, consequently, the first primary steps to extract the mineral, namely, coal is to remove the over burden, i.e., the survey material covering the valuable deposits of coal. For this purpose, NCL floated a tender inviting offers from various contractors. The scope of the work was removal of overburden by hiring of equipments such as excavators, tippers, dumpers, etc. The petitioner applied and gave his bid which was accepted and a letter of acceptance dated 20.9.2007 was issued. The scope of work as defined in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t No.3. In the application, the petitioner categorically stated that Form-C would be required for the purchase of machinery such as excavators from outside the State of U.P. for use in the works contract at the site of NCL. The respondent No.3, after verifying the contents issued requisite Form-C to the petitioner. The petitioner thereafter purchased machineries from outside the State worth ₹ 10,40,40,000/- at concessional rate of tax against Form-C. According to the petitioner, these machineries are being used in the execution of the works contract and is not being used for any other purpose. The respondent No.3 issued a notice to the petitioner under Section 10 read with Section 10-A of the Central Sales Tax Act to show cause as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the writ petition was entertained in the year 2008 and affidavits have been exchanged and, consequently, we are of the opinion, that at this stage it will not be appropriate or conducive to relegate the petitioner to the remedy of an appeal. Further, we find that there is no factual controversy involved and that only a pure question of law is required to be decided. Consequently, the preliminary objection is over ruled and the writ petition is being decided on merits. Under Section 8(3)(b) of the Central Sales Tax Act a registered dealer can purchase goods at concessional rate of tax for use of the purposes specified therein. For facility, the said provision is extracted hereunder:- 8. Rates of tax on sales in the course of inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the excavators etc. for the purpose of execution of the works contract on concessional rate of tax against Form-C duly issued by respondent No.3. The penalty has been imposed under Section 10-A(1)of the Act, which reads as under: 10A. Imposition of penalty in lieu of prosecution- (1) If any person purchasing goods is guilty of an offence under clause (b) or clause (c) or clause (d) of section 10, the authority who granted to him or, as the case may be, is competent to grant to him a certificate of registration under this Act may, after giving him a reasonable opportunity of being heard, by order in writing, impose upon him by way of penalty a sum not exceeding one-and-a-half times the tax which would have been levied under sub-sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y on the execution of the works contract, hence the petitioner has contravened the provisions of Section 10-A of the Act. Such reasoning is patently perverse and does not come within the parameters of imposition of penalty under clause (b), (c) and (d) of Section 10 of the Act. The learned standing counsel, however, submitted that penalty has been imposed under clause (d) of Section 10 of the Act, which stipulates that if a person after purchasing any goods for any of the purposes specified in clause (b), (c) or (d) of sub-Section (3) or sub-Section (6) of Section 8 fails without any reasonable excuse to make any use of goods for any such purpose in which case penalty under Section 10-A of the Act could be imposed. The submission of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
