Penalty under Central Sales Tax law requires false representation and mens rea; deletion upheld where goods were sufficiently connected to the certificate.

Penalty for violation of section 10(b) of the Central Sales Tax Act, 1956 requires a false representation and guilty intent; a mere later finding that the purchased goods were not covered by the registration certificate does not establish the offence without mens rea. On the facts, the goods described in the certificate and the goods purchased were sufficiently connected, so the Tribunal's deletion of penalty was upheld and no penalty was leviable.

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Issues: Whether penalty was leviable for alleged violation of section 10(b) of the Central Sales Tax Act, 1956, where the purchasing dealer claimed the goods were covered by the registration certificate and there was no false representation.

Analysis: Penalty under section 10(b) requires false representation and guilty animus. Mere later finding that the goods purchased were not covered by the certificate does not by itself establish the offence unless mens rea is shown. On the facts, the goods mentioned in the certificate and the goods purchased were sufficiently connected, and the Tribunal's reasons for deleting the penalty were held to be well founded.

Conclusion: Penalty was not leviable, and the Tribunal's deletion of the penalty was upheld.

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