2002 (11) TMI 767

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.... Tax Board, Ajmer, dated March 10, 1998 by which the penalty imposed on the respondent--M/s. Fabrico Saraf House, M.I. Road, Jaipur, for non-user of the power-loom for his personal use and letting it out on rent to someone else incurring imposition of penalty, has been set aside. From the impugned order itself it is borne out that the respondent although had purchased the power-loom for his person....

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....the machinery at a concessional rate for his personal use and yet he put this machine to commercial use by letting it out on rent. In order to test the strength of this submission, section 10 of the Central Sales Tax Act, 1956 had to be perused which deals with penalties in the event of the machine not being put to use for the purpose for which it was purchased at concessional rate and clause (d) ....

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.... "without reasonable excuse, to make use of the goods for any such purpose", which means that the penalty could be levied only if there was no reasonable justification on behalf of the purchaser for putting the purchased goods to some other use. It is not even the case of the petitioner that the respondent is a defaulter in making payment to the RIICO for not getting allotment of the plo....