https://www.taxtmi.com/caselaws?id=148346 Penalty under section 10(d) of the Central Sales Tax Act, 1956 is not automatic and can be imposed only where goods purchased for a permitted purpose are later used for another purpose without reasonable excuse. The court noted that, although the amended section 8(3)(b) did not permit use of the goods in works contracts, the assessee had received forms under the earlier regime and may have acted under a bona fide misapprehension. That circumstance was material because the statutory requirement of absence of reasonable excuse had to be established before penalty could be sustained, and the penalty was therefore held unsustainable. en-us Mon, 10 Jul 1967 00:00:00 +0530 Thu, 25 Apr 2013 17:53:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=148346 Penalty under section 10(d) of the Central Sales Tax Act, 1956 is not automatic and can be imposed only where goods purchased for a permitted purpose are later used for another purpose without reasonable excuse. The court noted that, although the amended section 8(3)(b) did not permit use of the goods in works contracts, the assessee had received forms under the earlier regime and may have acted under a bona fide misapprehension. That circumstance was material because the statutory requirement of absence of reasonable excuse had to be established before penalty could be sustained, and the penalty was therefore held unsustainable. Case-Laws VAT and Sales Tax Mon, 10 Jul 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=148346