https://www.taxtmi.com/caselaws?id=164349 Raw material purchased at a concessional rate under a recognition certificate must be used only for manufacturing the notified goods. Where the unused raw material was sold outside the State on consignment basis without departmental permission, it was treated as diversion and disposal for a purpose other than that permitted by the certificate. Section 4B(5) of the U.P. Trade Tax Act, 1948 covers such misuse and authorises penalty to protect revenue and make good the tax loss. On that basis, penalty was leviable on the unused glass-sheet raw material, and the Tribunal was not justified in setting aside the penalty. en-us Wed, 20 Aug 2008 00:00:00 +0530 Mon, 01 Dec 2014 14:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164349 Raw material purchased at a concessional rate under a recognition certificate must be used only for manufacturing the notified goods. Where the unused raw material was sold outside the State on consignment basis without departmental permission, it was treated as diversion and disposal for a purpose other than that permitted by the certificate. Section 4B(5) of the U.P. Trade Tax Act, 1948 covers such misuse and authorises penalty to protect revenue and make good the tax loss. On that basis, penalty was leviable on the unused glass-sheet raw material, and the Tribunal was not justified in setting aside the penalty. Case-Laws VAT and Sales Tax Wed, 20 Aug 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164349