High Court rules no penalty under section 10-A of Central Sales Tax Act due to lack of deliberate misrepresentation

The High Court held that penalty under section 10-A of the Central Sales Tax Act was not applicable as there was no deliberate false representation by the assessee in purchasing Gari Gola against form C. The Tribunal's findings showed no evidence of deliberate false representation, a necessary element for penalty under section 10(b) to apply. The revisions were dismissed, affirming that the penalty under section 10-A was not warranted in this case.

---

---

Issues involved: Whether penalty under section 10-A of the Central Sales Tax Act can be levied on the purchase of Gari Gola from outside the State of U.P. against declaration form C.

Summary:
The assessee, a registered dealer under the Central Sales Tax Act, imported Gari Gola against form C, believing it to be an item of Kerana. The assessing officer initiated penalty proceedings under section 10 for certain years, but the Tribunal held that penalty under section 10-A was not applicable due to lack of deliberate false representation by the assessee.

The Tribunal's findings, based on evidence, concluded that the assessee did not falsely represent the goods while purchasing. For penalty under section 10(b) to apply, there must be a deliberate false representation, which was not the case here. The word "falsely" implies a deliberate act done knowingly, which was not found in this situation. Therefore, the revisions lack merit and were dismissed.

In conclusion, the High Court held that the penalty under section 10-A of the Act was not applicable in this case as there was no deliberate false representation by the assessee while purchasing Gari Gola against form C.

---