TMI Blog2021 (12) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... al has found that the Petitioner had an unscrupulous intention in making a petition for issuance of C Forms so as to lead the officials to begin to believe that he was entitled to procuring goods on the strength of the registration certificate . In another place the Tribunal finds that the Petitioner in fact made a misrepresentation to the officials knowing fully well that he was not entitled to be issued with C Forms on the strength of the R.C. He is further said to have managed to obtain C Forms by such misguiding petition. The Court is inclined to agree with the learned A.S.C. that although in so many words it has not been stated that the Petitioner has mens rea, the findings in fact indicate that he did - Revision Petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturing and processing of goods for sale. Instead, he was found making purchases by false representation and misutilising the goods so purchased for purposes other than the one authorized. 3. The STO found that the aforementioned equipment had been purchased by the Petitioner on the strength of C Forms and they were utilized for purposes other than manufacturing of goods for sale thereby violating Sections 10 (b) and 10 (d) of the CST Act. The STO accordingly calculated 16% taxable effect on all the purchases and levied a penalty at one and half time the tax due on the purchases for both the years. 4. In the appeal filed by the Appellant Petitioner assessee, the ACST held that the dealer had no guilty intention while making the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , there is no estoppel against law and wrong issue of C Form could not have entailed a rightful or lawful action on the part of the respondent. It does not entitle the respondent to claim innocence that because C Forms were issued to him, he had no guilty intention in furnishing the same for making the purchases as he considered necessary. Holding that the Petitioner s guilty intention was proved beyond doubt, he was held liable to be penalized under Section 10-A of the CST Act for attracting the liability under Section 10(b) of the CST Act. 6. It was noticed by the Tribunal that, after purchase of the goods in question on the strength of C Forms, the Respondent had stopped the business for which R.C. was granted to him and wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, by using the printing machines, camera, lens, computer, etc. purchased on the strength of C Form and for using the same goods for job works, the dealer has committed the offence u/s. 10(d) of the CST Act and the Sales Tax Officer had rightly held the respondent liable U/s. 10(d) of the CST Act. 9. It was noted that the Petitioner had not presented any extenuating circumstance in order to mitigate the rigor of the penalty. 10. Learned counsel for the Petitioner placed reliance on the decision of the Supreme Court of India in Commissioner of Sales Tax, U.P. v. M/s. Sanjiv Fabrics, where in the context of penalty under Section 10-A(b) of the CST Act, the Supreme Court had observed that: We are of the considered opini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the impugned order, which clearly show that there were deliberate suppressions or misrepresentations by the Appellant and this was sufficient to fulfill the requirement of Section 10-A of the CST Act. 13. The above submissions have been considered. Section 10 and 10- A of the CST Act is as under: 10. Penalties. If any person (a) Furnishes a declaration under sub-section (2) of section 6 or sub-section (1) of section 6A or sub0section (4) or sub-section (8) of section 8, which he knows, or has reason to believe, to be false; or (aa) fails to get himself registered as required by section 7 or fails to comply with an order under sub-section (3A) or with the requirements of sub-section 3(C) or sub-section (3E) of tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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 or 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 of 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 section. 14. Although in the impugned orders of the STO and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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