https://www.taxtmi.com/caselaws?id=158709 Penalty under section 4-B(5) of the U.P. Sales Tax Act, 1948 is attracted only where raw material purchased under a recognition certificate is used to manufacture goods outside the scope of that certificate. The certificate here covered rubber products, and rubber tubes for animal-driven vehicles were treated as falling within that description, so the statutory basis for penalty was absent. Their possible exemption from turnover assessment did not alter the penalty inquiry, because the decisive question was conformity with the certificate terms. On that basis, penalty was not leviable and the challenge to the notice succeeded in favour of the assessee. en-us Wed, 28 May 1997 00:00:00 +0530 Tue, 07 Jan 2014 15:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=158709 Penalty under section 4-B(5) of the U.P. Sales Tax Act, 1948 is attracted only where raw material purchased under a recognition certificate is used to manufacture goods outside the scope of that certificate. The certificate here covered rubber products, and rubber tubes for animal-driven vehicles were treated as falling within that description, so the statutory basis for penalty was absent. Their possible exemption from turnover assessment did not alter the penalty inquiry, because the decisive question was conformity with the certificate terms. On that basis, penalty was not leviable and the challenge to the notice succeeded in favour of the assessee. Case-Laws VAT and Sales Tax Wed, 28 May 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=158709