https://www.taxtmi.com/caselaws?id=150325 Penalty under section 10(d) of the Central Sales Tax Act, 1956 arises only when goods purchased for a purpose under section 8(3)(b) are not used for that purpose without reasonable excuse. The assessee used the goods in retreading tyres on the footing that the activity amounted to manufacture, and the department had earlier treated retreading as manufacture before changing its view. That prior departmental position constituted a reasonable excuse for the assessee's conduct, and the Tribunal's acceptance of that circumstance was upheld. The penalty was therefore not sustainable. en-us Tue, 13 Jan 1970 00:00:00 +0530 Mon, 13 May 2013 12:44:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=150325 Penalty under section 10(d) of the Central Sales Tax Act, 1956 arises only when goods purchased for a purpose under section 8(3)(b) are not used for that purpose without reasonable excuse. The assessee used the goods in retreading tyres on the footing that the activity amounted to manufacture, and the department had earlier treated retreading as manufacture before changing its view. That prior departmental position constituted a reasonable excuse for the assessee's conduct, and the Tribunal's acceptance of that circumstance was upheld. The penalty was therefore not sustainable. Case-Laws VAT and Sales Tax Tue, 13 Jan 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=150325