1997 (5) TMI 418

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....ssed by the Trade Tax Tribunal whereby it allowed the Commissioner's appeal Nos. 495 and 496 of 1992 for the assessment years 1987-88 and 1988-89 and setting aside the orders passed by the Deputy Commissioner (Appeals), restored the penalties levied by the assessing officer under section 10-A read with section 10(d) of the Central Sales Tax Act. 2.. I have heard the learned counsel for the revisi....

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....r any such purposes. The assessee's explanation was that the coal that can be used in its ovens has to be of a superior quality and of particular size to generate a high level of heat required for the manufacture of refractories and since the coal purchased by it contains coal dust and smaller pieces of coal that cannot be used in the furnaces, the quantity of coal which is not so useable is sold ....

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.... that the quantity of goods that was sold was not useable in the ovens of the dealer and, therefore, there was a reasonable cause for not using the same. The Tribunal has upheld the penalty merely because a part of the goods had been sold. Before the Tribunal, the dealer had produced an order of the Commissioner and Director of Industries which shows that there can be up to 40 per cent of unuseabl....

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....tain any amount inferior coal or that the dealer's contention that only specified type of coal was useable in its furnace was not correct. Therefore, the circular issued by the Commissioner and Director of Industries supported the stand of the dealer that the consignments of coal contained a certain quantity that cannot be used for purposes like that of the revisionist. The Tribunal having failed ....