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TMI Blog2016 (8) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent is a Private Limited Company and was registered on 21.10.1997 by the Competent Authority under the Rajasthan Sales Tax Act as well as Central Sales Tax Act. It was noticed that the assessee had purchased certain goods on 'C' Form out of State of Shuttering Wood for an amount of Rs. 7,28,663/-. During the course of assessment it was found by the AO that the Shuttering Wood was intended for resale in the State of Rajasthan but since it was not sold, therefore, he issued notice to the assessee as to why penalty u/s 10A of the CST Act be not imposed, however, it was stated that since the assessee is a Contractor and is involved in the constructional activity, therefore, the same was used in its own business. Dissatisfied wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) If any person purchasing goods is guilty of an offence under clause (b) or clause (c) or clause (d) of section 10, the authority who granted to him or, as the case may be, is competent to grant to him a certificate of registration under this Act may, after giving him a reasonable opportunity of being heard, by order in writing, impose upon him by way of penalty a sum not exceeding one and a half times the tax which would have been levied under sub-section (2) of section 8 in respect of the sale to him to the goods, if the sale had been a sale falling within that sub-section : Provided that no prosecution for an offence under section 10 shall be instituted in respect of the same facts on which a penalty has been imposed under this secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, which in my view, taking into consideration the plain and simple language of Section 10A quoted hereinbefore, is unjustified. 9. The Apex Court in the case of State of U.P. v. Dyer Meakin Breweries Ltd. [1973] 31 S.T.C. 588, had also an occasion to consider identical issue where the said assessee was assessed by the Sales Tax Officer, Ghaziabad. Such assessment was accepted and the said officer initiated the proceedings for imposition of penalty u/s 10A, however, in the meanwhile the case of the assessee was transferred to Lucknow but the penalty was imposed by the Sales Tax Officer, Ghaziabad and it was claimed on behalf of the assessee that the STO Ghaziabad had no jurisdiction to levy penalty and the authority competent was the STO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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