TaxTMI 
TaxTMI 
1970 (4) TMI 143
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....holds a certificate of registration under the Central Sales Tax (Registration and Turnover) Rules, 1957 (annexure A). The relevant entry in the certificate of registration is to the effect that for use in mining the petitioner can purchase machinery, plant (productive and auxiliary) tools, equipment. The petitioner's case is that in accordance with the entry in the certificate of registration it purchased the following goods: (i) Drilling rods, (ii) Laboratory chemicals, (iii) M. S. rods, (iv) Tyre-tube, (v) Leyland Dumper, (vi) Dumper spares and (vii) Gasoline. According to the petitioner these goods are covered by the entry in the certificate of registration and it is entitled to purchase them on payment of concessional rate of sales tax ....
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....od for which the penalty was imposed. (ii) Opposite party No. 1 did not record any finding that the petitioner purchased the goods on a false representation. (iii) The penalty is illegal as it exceeds 11 times the tax payable at the concessional rate. (iv) (a) The impugned goods purchased by the petitioner were covered by the certificate of registration. (b) Gasoline in respect of which penalty was imposed, was not subject to Central sales tax during the relevant period, under section 8(2A) of the Act. Mr. Patnaik also raised another contention based on article 14 of the Constitution, but ultimately he wanted the point to be left open and accordingly we do not propose to deal with it in this judgment. 3.. The first content....
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....ues." Section 10A(1) is as follows: "10A. (1) If any person purchasing goods is guilty of an offence under clause (b) or clause (c) or clause (d) of section 10, the authority who granted to him or, as the case may be, is competent to grant to him a certificate of registration under this Act may, after giving him a reasonable opportunity of being heard, by order in writing, impose upon him by way of penalty a sum not exceeding one-and-a-half times the tax which would have been levied under this Act in respect of the sale to him of the goods if the offence had not been committed: Provided that no prosecution for an offence under section 10 shall be instituted in respect of the same facts on which a penalty has been imposed und....
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....gistration. The relevant portion of that letter-marked annexure E-runs thus: "Under section 8(3)(b) of the Central Sales Tax Act, a dealer is entitled to purchase goods in the course of inter-State trade and commerce at a concessional rate for re-sale, for use in manufacture, and for use in mining or processing, etc. Accordingly you are entitled to purchase machineries and spare parts which are directly used in mining. It appears from your letter that the earth-moving machineries, dumpers and shovels are directly used in mining and you are entitled to purchase them at a concessional rate, as provided in section 8(1)(b) of the Act." Even assuming-after the case goes back-that the Sales Tax Officer is of opinion that the goods purchased ar....
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....tioned. If the normal rate had been paid for the goods, without making any false representation, no offence under section 10(b) would be committed. It is only to such cases that the expression "if the offence had not been committed" has application and the penalty payable would be one and a half times the normal rate. The Mysore High Court took this view in Pais & Sons v. State of Mysore[1966] 17 S.T.C. 161. Though this decision was held to be not laying down good law in a later decision of the Madras High Court in State of Madras v. Prem Industrial Corporation[1969] 24 S.T.C. 507., on which Mr. Patnaik relied, with respect, we are inclined to agree with the view taken by the Mysore High Court. Mr. Patnaik's contention on this point is ther....