TMI Blog1976 (1) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... esale of goods in the course of inter-State trade in pulses, sugar, turmeric and grams. It was found out on checking their accounts that during the assessment year 1972-73, the appellants have purchased Myrobalan under bill No. 67 dated 14th August, 1972 for Rs. 2,473 For the assessment year 1973-74 the appellants have purchased the same commodity under bill No. 32 dated 14th March, 1974 of 2,297 and for the assessment year 1974-75, they purchased the same commodity under bill Nos. 48 and 51 dated 4th June, 1974 dated 4th June, 1974 and 22nd June, 1974 for Rs. 9,359. It is common case that for the said purchases of Myrobalan the assessees had used 'C' forms, but before 1st September, 1975, as their registration certificate did not include M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ues involved in all the three appeals are one and the same we pass a common-order. 5. At the time of hearing of the appeals we were provided with the original certificate of registration issued to the appellant in Form B under Central Sales Tax (Registration And Turnover) Rules 1957, under which the business of the appellant is shown as wholesale and retail distribution. With regard to class of the goods specified for the purchase under Sub-s. (1) and (3) of s.8 of the Central Sales Tax Act, and for the sales of those goods in the course of inter-State trade, they had been permitted for re-sale in pulses sugar turmeric and gains. So it is apparent that Myrobalan was not included as one of the specified goods. It is also common case that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t raised. 6. In The Ben Gorm Nigiri Plantations Company, Conoor vs. The Government of Madras 1, a dealer registered under Central Sales Tax Act, 1956 wanted a certificate in respect of the goods for the use in the manufacture of tea-chests for packing purpose, machinery, drugs, etc. For running the estate and manufacturing tea and the certificate of registration was issued on the assessee s application against the column for use in manufacture" "tea-chests, machinery, drugs etc". Were mentioned and 'C' form issued by the assessee included blanket paints, tiles and brushes. Penalty was levied. It was held that the assessees could possibly have formed the belief and quite honestly. That the word "etc" would cover these articles and therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ea dealer cannot be penalised for contravention of s. 10 (b)of the Act. 8. In Sri Lakshmi Machine Works vs, State of Madras where the assessee manufacturing textile machinery imported asbestos sheets from outside the State by issuing 'C' form and the levy penalty against the assessee by the assessing officer was restored by the Board of Revenue. It was held that no mens rea was established and that the representation had been made under a bona fide belief that the goods were included in the registration certificate and therefore the order of the Appellate Assistant commissioner in setting aside order of the assessing offer was justified. I that decision it is also further stated aside the order of the assessing officer was justified. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all the decided cases of law stress on the point whether the assessee falsely and with guilty mind acted while making purchase by issue of C form declaration which their registration certificate did not include. 10. Now, in the instant case we find from the explanations given by the appellant to the show cause notice issued by the assessing officer for levying penalty under s. 10A. That is shown in the their certificate that for wholesale and retail and distribution the same was being issued and as they are dealers in many grocery articles they honestly believed they could purchase all commodities in which they are dealing from outside State. Even in the prior assessment years they have purchased Myrobalan by issue of C form outside t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tration certificate enabled them to bring Myrobalan inside the State by purchasing them outside the State by using 'C' form declaration. So we differ from the view taken ny the authorities below and we do not find anything to warrant the conclusion that by issue of 'C' form before such purchase of Myrobalan was made by the appellant they were dishonestly acting. 11. It has also to be pointed out at his stage that the appellants were levied penalty once for the same purchase by the assessing officer and on that there were appeals to the first appellate authority and the first appellate authority, by his order dated 20th November, 1975, had held that the assessing officer did not discuss anything whether there was any mens rea on the part o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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