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2008 (3) TMI 450 - SC - VAT and Sales TaxWhether penalty should be imposed for failure to perform a statutory obligation? Whether the contravention was made by the defaulter with any 'guilty intention' or not? Held that:- Appeal dismissed. As a finding of fact has been arrived at that the dealer had not furnished any proof in regard to its inability to use it for manufacturing purposes, it was obligatory on the part of the appellant as it has special knowledge in regard thereto to show as to why the entire quantity of goods could not be utilised. A finding of fact has also been arrived at by the assessing authority that the vendee had utilised the self-same goods for manufacturing. Ten per cent of the purchased goods, namely, 2532.989 M.T. is not such which could be ignored by the assessing authority. Although duty was payable thereon, it may be that the auction of lots was on "as is where is" basis, the same would not mean that a part of it could not be melted for manufacturing the ingots. If that was the position, it could have informed the authorities in that behalf even prior to effecting the sale to a third party. Moreover, the assessing authority as also the appellate authority had held that the appellant sold the goods knowingly and, it must, therefore, be inferred that the finding in regard to mens rea had also been arrived at.
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