9911796707
TMI Blog2007 (5) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... at double the rate of concession wrongly availed by him. All the three authorities below, namely, assessing authority, Deputy Commissioner (Appeals) and Tax Board have concurrently held against the assessee and have upheld the said penalty amounting to Rs. 13,600. Mr. Gogra, learned counsel for the assessee-petitioner, submits that the Tax Board has erred in upholding the said penalty under section 10A of the CST Act because the lathe machinery was purchased by the assessee at the concessional rate of three per cent as it helped in the production of glass chetons (small glass pieces) used for decorating glass bangles, etc. He submits that the main machinery used for manufacturing glass chetons has several parts and the parts of such main m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be useful for setting right or repairing the main machine itself which produces the goods in question, namely, glass chetons. He submitted that on the own admission of the assessee before the assessing authority in his reply to the impugned notice, the assessee has clearly admitted that the lathe machine is a helping machine to the main manufacturing machine. He further submitted that this could be unending process and even the machinery manufacturing the lathe machine could have been purchased by the assessee at concessional rate. He relied upon a judgment of the Madras High Court in Koodal Industries Limited v. State of Tamil Nadu [1994] 93 STC 446, wherein the Madras High Court held that where the petitioner's certificate of registr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court. The West Bengal Taxation Tribunal constituted under article 323B of the Constitution of India which substituted the jurisdiction of the High Court, in Hindusthan Rope Works v. Assistant Commissioner of Commercial Taxes, Special Cell [1994] 92 STC 466 (WBTT) held in almost similar facts and circumstances as are obtaining in the present case that the welding and drilling machines, which were used to keep the strander and ropetwisting machines in running condition without undue stoppage of work, could be said to be for maintenance. Under the definition in Explanation (iv) of section 10F(8) the expression "plant and machinery" is contemplated as a term wider than the term "productive equipment". Even if the welding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be imposed on the assessee for paying the concessional rate of tax. The SLP against the said judgment of M/s. Alcobex Metal Corporation was dismissed by the honourable Supreme Court on April 4, 1990 vide [1990] 77 STC Frsc 9, item No. 30. Having considered the rival submissions and case law cited at bar, this court is of the opinion that the present revision petition deserves to be allowed. It is undisputed that the registration certificate granted in favour of the assessee includes the terms "machinery and their parts" in the registration certificate. The word "machinery" is a word of wide import and not only the machinery used directly for manufacturing the goods sold by the assessee are sought to be covered but ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d case. On the other hand, case law relied upon by learned counsel for the assessee are clearly supportive of his case and while the Allahabad High Court set aside the penalty under section 10A of the CST Act on the purchase of diesel generating set against C forms the West Bengal Tribunal allowed the benefit of purchase of welding and drilling machines to be included in capital investment for computing benefit under section 10F of the Bengal Finance (Sales Tax) Act, 1941. Therefore, this court finds that the authorities below have erred in imposing penalty under section 10A of the CST Act for purchase of lathe machine at concessional rate of three per cent against declaration in form C. Accordingly, this revision petition is allowed. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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