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TMI Blog2022 (3) TMI 631X X X X Extracts X X X X X X X X Extracts X X X X ..... i/ first respondent in STA.No.307/2003, the petitioner / assessee has come up with this writ petition. 2.The petitioner company is a registered dealer both under the TNGST and CST Acts on the file of the 3rd respondent. During the assessment year 1998-99, they had purchased agri films and cement to the tune of Rs. 2,38,005/- on issuance of form 'C' declaration from other State dealers and used the same in the construction of plant and machinery i.e., bio-compost yards and bio-gas reactors. Upon scrutiny of the accounts submitted by the petitioner, it was pointed out by the third respondent that the petitioner company was not eligible for concessional rate of tax as the said materials were not included in the registration certificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actor and the same were used in the manufacture of goods; and therefore, they had purchased the disputed goods at the concessional rate on issuance of form 'C' declaration under the bonafide belief that they are entitled for the same. The learned counsel further submitted that there is no element of 'mens rea', which is the necessary component of the offence under section 10(b) of the Act, so as to levy penalty on the petitioner. Though the second respondent / Appellate Authority has rightly pointed out the same and deleted the penalty levied by the third respondent, yet, the first respondent / Tribunal declined to accept such finding and erred in setting aside the order of the second respondent and restoring the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontention and levied penalty at 150% of the tax due i.e., to the tune of Rs. 39,597/- under section 10A of the CST Act. The findings of the third respondent are quoted below for ready reference: ...they have purchased Agri-film and cement for their building i.e. plant construction purpose only and there is no product of manufacturing and selling on the goods purchased, for which, they are not eligible to purchase the goods by issue of 'C' forms as the above goods have not been included in class 'b' of the certificate "for use in manufacture". 8.On the other hand, the second respondent / Appellate Authority in the appeal filed by the petitioner, set aside the penalty, by observing that the petitioner had not violated the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manufacture of other goods, the conclusion of the first appellate authority that the buildings constructed out of these materials are used for the purpose of manufacturing is far fetch and cannot be accepted. The respondent had violated the provisions of Central Sales Tax Act and the Registering Authority is correct in the levy of penalty. We therefore set aside the order of the Appellate Assistant Commissioner (CT) and restore the order of the Registering Authority." 10.In the light of the admitted fact that the petitioner had purchased the goods that are not covered under the Form B registration certificate issued to them, at the concessional rate against issuance of form 'C' declaration, this court has no hesitation to ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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