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2022 (1) TMI 862 - MADRAS HIGH COURTLevy of penalty under Section 10A of the Central Sales Tax Act, 1956 - C-Forms - inter-state sales - absence of a finding that the petitioner had "falsely represented" at the time of purchase of goods that the same were covered by the registration certificate issued to them - section 10(b) of the CST Act - HELD THAT:- Admittedly, in the present case, there was no finding either in the assessment order or in the orders passed by the Appellate Authorities that the petitioner had made “false representation” that the goods purchased against 'C' Form from the inter state dealers, were covered under the Form 'B' issued to them, thereby constituting the offence under section 10(b) warranting levy of penalty under section 10A of the CST Act. In fact, all the authorities confined their enquiry to merely find, as to whether the goods purchased were mentioned in the registration certificate issued to the petitioner and they failed to make any enquiry, as to whether the petitioner had "falsely represented" when purchasing the goods that the same were covered by the certificate of registration issued to them, though not covered - the essential ingredient of mens rea for levy of penalty on the petitioner, was not established. In such circumstances, the findings of the Assessing Officer as confirmed by the First Appellate Authority as well as the Tribunal that the petitioner committed the offence under section 10(b) warranting levy of penalty under section 10A of the Act, cannot be allowed to be sustained. Both the writ petitions stand allowed by setting aside the orders passed by the authorities below, with respect to levy of penalty - decided in favor of petitioner.
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