1999 (11) TMI 841

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..... s passed levying the penalty under section 10(b) for purchase of modular furniture which was considered to be a capital asset. The goods were purchased in between November 26, 1991 and March 26, 1992, to the extent of Rs. 42,45,428. It was found that there was clear misuse of C forms and penalty at 1 times of the local rate of 13 per cent was levied. 2.. In appeal, it was found that there was .....

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..... he penalty, was not competent to levy since the registration certificate was granted by the Assistant Commercial Tax Officer. It was also submitted that, the penalty is excessive. On both these questions, the Tribunal considered the contention of the assessee and it was found that the Assistant Commissioner of Commercial Taxes was the competent authority who could issue the certificate of registra .....

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..... pecify. Rule 5 of the Central Sales Tax (Registration and Turnover) Rules, 1957, refers to notified authority who can grant the certificate of registration. The Central Government has issued a notification on February 22, 1957 under which, authority competent to register under local sales tax law of the State is authorised to grant the certificate of registration. Under section 10A(1) of the Karna .....

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..... he Tribunal as the assessee is an export oriented unit and these items were subsequently entered in the certificate of registration and it was found that the local rate of tax in the selling State was 6 per cent. We need not go to the reasoning of the Tribunal, but the fact remains that the penalty was reduced to 6 per cent of the amount of total purchase. A contention is raised by the learned cou .....

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..... , i.e., total unit of computers which was even accepted by the assessing authority at a later date. We need not go to the various contentions which have been raised. The fact remains that, at the time of purchase of items, the said items were not covered by certificate of registration. Even if the C form is issued, subsequently, after the amendment, then, it will not cover the transactions of pu .....

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