Bona fide use of C forms assessed at issuance; later disclosure cannot cure false representation without registration.

Penalty under section 10A of the Central Sales Tax Act, 1956 was upheld where a dealer issued C forms for goods for which it was not registered under the Central Act. Bona fides had to be assessed at the time the declaration forms were issued, and later disclosure of purchase particulars did not cure the false representation that registration existed for those goods. Because no explanation was offered for issuing the forms despite the absence of registration, the conduct was treated as a statutory breach attracting penalty.

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Issues: Whether the dealer was liable to penalty under section 10A of the Central Sales Tax Act, 1956 for issuing C forms in respect of goods for which it was not registered, and whether subsequent disclosure of purchase details negatived bona fides.

Analysis: The dealer had issued C forms for electrical goods, machinery, sockets and PP rings although it was not registered for those items under the Central Act. The subsequent furnishing of purchase particulars did not establish bona fide conduct, because bona fides had to exist at the time of purchase and issuance of the forms. No explanation was offered for issuing the forms despite the absence of registration, and the conduct amounted to a false representation that registration existed for the relevant goods.

Conclusion: The dealer was liable to penalty under section 10A of the Central Sales Tax Act, 1956.

Ratio Decidendi: Bona fide conduct for the purpose of penalty under section 10A must be judged at the time of issuance of the statutory declaration form, and subsequent disclosure of transactions does not cure a false representation made without the requisite registration.

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