https://www.taxtmi.com/caselaws?id=106045 Goods purchased under a recognition certificate for a specified manufacturing purpose remained subject to that condition, and disposal for another use attracted the statutory penalty. Section 4B(5) of the U.P. Sales Tax Act was treated as a penal provision, but one conferring discretionary power to levy penalty where certified goods were used otherwise or otherwise disposed of. On the facts, the dealer had sold part of the scrap without using it in manufacture, had not promptly shown inability to utilise it, and the findings recorded knowing sale in breach of the certificate conditions. The plea of purchase on an "as is where is" basis did not override the statutory restriction, and absence of mens rea was not established. en-us Wed, 05 Mar 2008 00:00:00 +0530 Mon, 16 Dec 2013 11:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=106045 Goods purchased under a recognition certificate for a specified manufacturing purpose remained subject to that condition, and disposal for another use attracted the statutory penalty. Section 4B(5) of the U.P. Sales Tax Act was treated as a penal provision, but one conferring discretionary power to levy penalty where certified goods were used otherwise or otherwise disposed of. On the facts, the dealer had sold part of the scrap without using it in manufacture, had not promptly shown inability to utilise it, and the findings recorded knowing sale in breach of the certificate conditions. The plea of purchase on an "as is where is" basis did not override the statutory restriction, and absence of mens rea was not established. Case-Laws VAT and Sales Tax Wed, 05 Mar 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=106045