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TMI Blog2019 (5) TMI 968X X X X Extracts X X X X X X X X Extracts X X X X ..... ered dealer and carried on the business of manufacture and sale of Tractor Parts and Diesel Engine Parts. A certificate of registration has been issued by the assessing authority of the revisionist to purchase the goods so as are mentioned in the certificate of registration. The items so are mentioned in the registration certificate are Rough Cast Iron Casting (Rough C.I. Casting) and lubricants. The assessee has effected the purchase of C.I. Casting amounting to Rs. 7,42,463.92/- and lubricants for sum of Rs. 1,924/- from one M/s Amit Alloys and Ferro Casting, Dhaulpur, Rajasthan against two Form C. The C.I. Casting was brought by the applicant for the purposes of manufacture of certain machines and tractor parts. The assessing authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s certificate of registration authorises the applicant to purchase the "Rough C.I. Casting". The Tribunal vide impugned order dated 10.12.2010 has allowed the appeal filed by the Commissioner and has set aside the order passed by the First Appellate Authority by restoring the penalty order of the assessing authority. Learned counsel for the applicant has submitted that the proceedings under Section 10-A can only be initiated when a dealer is found guilty of an offence under Clause (b) or Clause (c) or Clause (d) of Section 10 of Central Sales Tax Act. Learend counsel therefore submits that in the instant case the penalty proceedings was initiated against the applicant under Section 10-A on the basis that the applicant is guilty of an off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the authorities below as well as the orders passed by the Tribunal. The First Appellate Authority has partly allowed the appeal and has knocked off the penalty imposed on the purchase of "C.I. Casting". The First Appellate Authority has recorded categorical finding by holding that the "Rough C.I. Casting" and "C.I. Casting" are same item and after machining C.I. Casting the dealer manufactures machine parts/Tractor parts. The First Appellate Authority has also recorded categorical finding that the applicant/ assessee has not misused Form C nor the dealer assessee has falsely represented while affected the purchase of C.I. Casting. Admittedly the item purchased as C.I. Casting has been used and utilised for the purpose of manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in case his contention is ultimately found by the Court to be not acceptable. That surely could never have been the intention of the Legislature. 37. In view of the above, we are of the considered opinion that the use of the expression "falsely represents" is indicative of the fact that the offence under Section 10(b) of the Act comes into existence only where a dealer acts deliberately in defiance of law or is guilty of contumacious or dishonest conduct. Therefore, in proceedings for levy of penalty under Section 10A of the Act, burden would be on the Revenue to prove the existence of circumstances constituting the said offence. Furthermore, it is evident from the heading of Section 10A of the Act that for breach of any provision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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