1992 (3) TMI 324

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....ng the following two questions of law arising out of the Tribunal's order: (i) Whether, in the facts and circumstances of the case, the timber card board sheets and wire nails could be termed as raw material? (ii) Whether, in the facts and circumstances of the case, the Tribunal was right in setting aside the penalty without holding that there was a sale within the State or sale in the cours....

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....d not produced any accounts showing the sale of packing material within the State or in the course of inter-State trade and commerce. Similarly for the assessment year 1972-73, penalty of Rs. 31,437 was levied for the same reason. In the appeals preferred to the Deputy Commissioner (Appeals), it was submitted that the order dated 17th May, 1971 deleting entries of card board sheets, wood timber....

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....t be levied so long as the items are entered in the registration certificate. It was further observed that with regard to levy of penalty under section 5C(2) the matter was remanded and it was informed that the assessing authority thereafter has levied fresh penalties, against which appeals were preferred and the limited point to be examined by the Tribunal was as to whether the order of remand wa....

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....e assessing authority would be free to take action in accordance with law. But so long as the position remains that the entries are existing in the certificate of registration, the penalty under section 5C(2) cannot be levied on the ground that the assessee is not entitled to purchase the items as raw material.   Regarding the matter for purchase of other raw materials, on which it was to ....