https://www.taxtmi.com/caselaws?id=154477 A penal provision under section 46(2)(d) of the Kerala General Sales Tax Act had to be strictly construed, and penalty could be imposed only if the revenue proved that the purchaser failed without reasonable excuse to use naphtha for the declared purpose. The Kerala HC found that the assessee used naphtha as a basic input in manufacturing fertilisers, even if it was not traceable in the final product. The contemporaneous administrative view also supported treating naphtha as a component part for the declared use. On that basis, the assessee had not contravened the provision and no penalty was leviable. en-us Mon, 18 Nov 1985 00:00:00 +0530 Wed, 21 Aug 2013 18:08:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=154477 A penal provision under section 46(2)(d) of the Kerala General Sales Tax Act had to be strictly construed, and penalty could be imposed only if the revenue proved that the purchaser failed without reasonable excuse to use naphtha for the declared purpose. The Kerala HC found that the assessee used naphtha as a basic input in manufacturing fertilisers, even if it was not traceable in the final product. The contemporaneous administrative view also supported treating naphtha as a component part for the declared use. On that basis, the assessee had not contravened the provision and no penalty was leviable. Case-Laws VAT and Sales Tax Mon, 18 Nov 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=154477