TMI Blog2022 (1) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the inter state dealers, were covered under the Form 'B' issued to them, thereby constituting the offence under section 10(b) warranting levy of penalty under section 10A of the CST Act. In fact, all the authorities confined their enquiry to merely find, as to whether the goods purchased were mentioned in the registration certificate issued to the petitioner and they failed to make any enquiry, as to whether the petitioner had falsely represented when purchasing the goods that the same were covered by the certificate of registration issued to them, though not covered - the essential ingredient of mens rea for levy of penalty on the petitioner, was not established. In such circumstances, the findings of the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged in the business of manufacture of Engineering Product, Coimbatore and an assessee on the files of the third respondent, Commercial Tax Officer, Singanallur Circle, Coimbatore. For the assessment years in question, they filed its returns. Upon scrutiny of the same, the 3rd respondent passed the assessment orders, levying penalty of ₹ 1,20,287/- and ₹ 1,78,841/- respectively under Section 10A of the Central Sales Tax Act, 1956 (for brevity, 'the CST Act') on the ground that the petitioner made inter-state purchase of goods against Form 'C' which were not included in the Form 'B' registration certificate issued to them. ii) Aggrieved by the assessment orders passed by the 3rd respondent, the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to refer to Section 10(b) of the CST Act, for commission of which, the petitioner was levied with penalty under section 10A and the same reads as under: S.10. Penalties. (a)... (aa)... (b) being a registered dealer, falsely represents when purchasing any class of goods that goods of such class are covered by his certificate of registration. (c)..... A reading of the above provision would make it clear that the following two conditions must be cumulatively satisfied to attract penalty under Section Section 10A of the CST Act: (i) That the goods purchased against Form 'C' are not covered by the certificate of registration. (ii)The registered dealer must falsely represent when purchasing any cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under Section 10A of the CST Act, 1956. As per the observation made in the afore referred decision, one of the essential ingredients of the offence under Section 10(b) for levying penalty under section 10A of the CST Act, is false representation by the dealer issuing with Form 'C', when purchasing any class of goods that the goods of such class are covered by the certificate of registration issued to them and mens rea is a necessary component. 9.Admittedly, in the present case, there was no finding either in the assessment order or in the orders passed by the Appellate Authorities that the petitioner had made false representation that the goods purchased against 'C' Form from the inter state dealers, were cov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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