https://www.taxtmi.com/caselaws?id=158660 Concessional raw materials purchased under a recognition certificate for manufacture of notified goods were used instead to make transformer parts for repair, which was treated as a use for a different purpose and attracted penalty under section 4-B(5) of the U.P. Trade Tax Act, 1948. The provision was read as not requiring proof of mens rea, because liability arose from the prohibited use itself. However, the maximum penalty was found unjustified where no reasons were recorded and the quantum should correspond reasonably to the tax difference; the penalty was therefore upheld in principle but reduced. en-us Thu, 20 Mar 1997 00:00:00 +0530 Sat, 02 Nov 2013 15:38:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=158660 Concessional raw materials purchased under a recognition certificate for manufacture of notified goods were used instead to make transformer parts for repair, which was treated as a use for a different purpose and attracted penalty under section 4-B(5) of the U.P. Trade Tax Act, 1948. The provision was read as not requiring proof of mens rea, because liability arose from the prohibited use itself. However, the maximum penalty was found unjustified where no reasons were recorded and the quantum should correspond reasonably to the tax difference; the penalty was therefore upheld in principle but reduced. Case-Laws VAT and Sales Tax Thu, 20 Mar 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=158660