9911796707
TMI Blog2020 (1) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal No. 43 of 2006 and Second Appeal No. 44 of 2006, whereby the appeals preferred by the revisionist were rejected. These revisions relate to assessment years 2001-02 and 2002-03. 3. The facts of the case in brief are that assessee/revisionist is a firm engaged in the business of buying and selling "Vanaspati, other edible oils, sugar etc.". The revisionist firm is registered under Section 8-A of U.P. Trade Tax Act as well as under Section 7 of the Central Sales Tax Act. The revisionist established a Cold Storage under the name and style of Shreenathji Cold Storage, Wazirganj, Budaun as a branch of the head office at Allahabad and accordingly moved an application for the amendment of the registration certificates under the U.P. Trade Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st, thus, the applicant was under the bonafide belief that the applicant was authorized to import the goods in question against Form-C, and therefore no violation of any provision has been made by him for which he can be penalized under Section 10-A of the Central Sales Tax Act. 7. The Assessing Authority however did not accepted the explanation of the revisionist and imposed penalty in exercise of powers under Section 10-A of the Central Sales Tax Act, holding that the revisionist had imported machines and parts thereof on Form-C without having been duly authorized in this regard and imposed penalty to the tune of Rs. 1,30,000.00 under Section 10-A of the Central Sales Tax Act by order dated 22.02.2005. 8. Aggrieved by the aforesaid orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the first Appellate Authority as well as Tribunal were arbitrary and have not considered the case of the revisionist in proper perspective and therefore the penalty imposed upon him is liable to be set aside. 11. Learned Standing Counsel appearing on behalf of Revenue on the other hand has submitted that under the scheme of the Central Sales Tax Act it is mandatory that certificate of registration should assign list of items which are purported to be dealt by the assessee. He further submitted that the application in this regard was preferred by the revisionist but no orders in this regard have been passed in favour of the revisionist and therefore in absence of the addition of items in the registration certificate the revisionist could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv Fabrics, 2010 NTN (Vol. 44) 69, to canvass his submissions. In paragraph 22 of the said judgment, the Court has held as under : "22. 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 10- A of the Act, burden would be on the revenue to prove the existence of circumstances constituting the said offence. Furthermore, it is evidenct from the heading of Section 10-A of the Act that for breach of any provision of the Act, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cotton waste. Assuming that the dealer was of the bona fide belief that cotton included the cotton waste, it is hard to believe that there was some confusion in the mind of the dealer in so far as other items were concerned. Similarly, in the second set of appeals, it is evident from the impugned judgment that the High Court has not examined the explanation furnished by the dealer that they were under a bona fide belief that they were authorized to purchase oil seeds against Form 'C' issued to them regularly by the department without any objection. It is manifest that the High Court proceeded to examine the case of the dealer on the premise that offence under Section 10(b) of the Act was an absolute offence." 16. Perusal of the afore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the list of goods he intends to import on Form - C. 20. In the light of the above, the judgment of the Hon'ble Apex Court in the case of M/s Sanjiv Fabrics (supra) is distinguishable on facts. In the instant case, the revisionist had full knowledge about the fate of his applications for addition of branch as well as items. He had commenced his business at the new branch which was added in the amended certificate of registration. Despite the fact that his application for addition of items was not allowed, he continued to import the said goods under Form-C and therefore from the above facts it cannot be deciphered that the revisionist has acted in bonafide manner in importing the said goods. 21. In view of the discussion made above, this Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
