False representation for C forms was treated as a factual issue, so penalty under section 10A was not attracted.

An assessee's liability to penalty under section 10A of the Central Sales Tax Act, 1956 depended on whether it falsely represented itself as a registered dealer when purchasing goods in inter-State trade. The revising authority found, on the materials, that there was no false representation and that the problem arose from an accidental mistake in renewal of registration and issuance of C forms. That factual finding could be interfered with only if perverse or unsupported by evidence, and no such infirmity was shown. Accordingly, the referred question did not raise a question of law, and penalty was not attracted on the facts found.

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Issues: Whether the assessee falsely represented itself to be a registered dealer while purchasing goods in the course of inter-State trade or commerce so as to attract penalty under section 10A of the Central Sales Tax Act, 1956.

Analysis: The revising authority found, on the materials before it, that the assessee had not made any false representation and that the issue arose from an accidental mistake in renewal of registration and issuance of C forms. That finding was one of fact and could be interfered with only if it was unsupported by material or was perverse. No such infirmity was shown. On that basis, the referred question was held not to raise a question of law.

Conclusion: The assessee was not liable to penalty under section 10A of the Central Sales Tax Act, 1956 on the facts found.

Final Conclusion: The reference was declined to be answered, and the result stood in favour of the assessee.

Ratio Decidendi: A finding that the assessee did not make a false representation for obtaining C forms is a finding of fact, not open to interference unless shown to be perverse or unsupported by evidence.

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