1997 (4) TMI 479

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....ged in the manufacture of steel tube pipe, pipe fittings, pulleys, oil engine parts, cast iron, etc., was granted a recognition certificate on December 15, 1976 with effect from April 1, 1976. By impugned notice, annexure 3 to the writ petition, relating the assessment year 1977-78, the petitioners were called upon to show cause why penalty be not levied for having used the raw material procured u....

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....rwise than by way of sale in the State or in the course of inter-State trade or commerce or in the course of export out of the territory of India such dealer shall be liable to pay as penalty such amount as the assessing authority may fix which shall not be less than the difference between the amount of tax on the sale or purchase of such goods payable under this section and the amount of tax paya....

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....nding Counsel that the raw material was used for the goods, which are not notified. Under section 4-B(5)(a) penalty can be imposed only where the raw material is used for a purpose other than that for which the recognition certificate was granted. There is nothing to show that penalty can be imposed even if the goods are used for the purpose mentioned in the certificate. Hence the submission has n....