TaxTMI 
TaxTMI 
1968 (11) TMI 92
X X X X Extracts X X X X
X X X X Extracts X X X X
....n order in which he did not record findings in support of his conclusion, he directed the petitioner to pay a penalty of Rs. 4,628.50 in respect of the assessment year 1961-62 and a sum of Rs. 3,649.89 in respect of the year 1962-63. There were two unsuccessful appeals preferred by the petitioner to the Assistant Commissioner, and in the further appeals preferred to the Sales Tax Appellate Tribunal the limited relief which he secured was a reduction in the penalty. In these two revision petitions, the petitioner asks us to quash the orders made in that way. The petitioner was registered as a dealer under section 7 of the Central Sales Tax Act (which will be referred to as "the Act ") and a registration certificate was granted to hi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ch purpose; * * * * he shall be punishable with simple imprisonment which may extend to six months, or with fine, or with both; and when the offence is a continuing offence, with a daily fine which may extend to fifty rupees for every day during which the offence continues." It is seen from clause (b) that an offence is committed under it only when there is a false representation by a registered dealer that the goods. purchased by him were covered by his certificate of registration. It is not every purchase of goods which is not covered by a certificate of registration that constitutes an offence. That offence is committed only when the goods are not covered by the certificate of registration and there is a false representation tha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ax Officer to bestow thought to the question whether there was any false representation when the petitioner purchased those goods, or even the paint. On that there was no discussion by the Assistant Commercial Tax Officer. So he could not record a finding that an offence was committed under section 10(b) unless he reached the conclusion that the petitioner who knew that the goods were not covered by the certificate of registration made a false statement that they were when he made the purchases. The finding that an offence under section 10(b) was committed is therefore an unsustainable finding and it was not possible for the Assistant Commissioner of Sales Tax and the Sales Tax Appellate Tribunal to confirm it. The offence of which secti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mbered that even on the assumption that the petitioner's registration certificate authorised purchase of goods only for the manufacture of goods for sale, no offence under clause (d) of section 10 is committed unless such is the purpose of which the purchase is made and there is misuse of the goods and there was no reasonable excuse for the failure to use the goods for that purpose. The Assistant Commercial Tax Officer could not record a finding that an offence was committed under that clause unless he recorded a positive finding that the failure to use the goods for the purposes referred to in that clause was without reasonable excuse and that finding he did not record. So, it is clear that his finding that an offence was committed under s....