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2014 (11) TMI 1056 - HC - VAT and Sales TaxLevy of penalty - Section 10(b) read with section 10A of the Act - Whether the assessee a registered dealer made false representation in the declaration in form C issued by him - Held that:- in the application the assessee made it clear that he wanted a certificate in respect of the goods for use in the construction of the bridge. According to him, he thought that "etc." would cover all those articles which may be required for storage of goods used in construction. It is not necessary to decide whether "etc." would actually cover all those articles. It will suffice to say that the assessee could possibly have formed the belief and quite honestly that "etc." would cover those articles. Section 10(b) is a penal provision and where a question arises whether an offence has been committed or not, the dealer who is accused of the offence is entitled to the benefit of the doubt. This is not a case where it can be said that the dealer with the full knowledge of the falsity of the representation made the declaration in the form C issued by him. Therefore, in the light of the language employed in the section and the nature of penalty contemplated, it is difficult to say that all types of omission or commission in the use of form C will be embraced in the expression "false representation". Finding of mens rea is necessary for levy of penalty under section 10(b) read with section 10A of the Act. - Decided in favour of assessee
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