2004 (4) TMI 554

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....rposes of manufacturing rice out of paddy. The present revision arises out of penalty proceeding under section 4-B(6) of the U.P.Sales Tax Act. The dealer-opposite party has sent the notified goods, i.e., rice, after manufacturing it on consignment basis at Rs.3,50,192.50. The department took an objection that the dealer-opposite party has violated the terms of section 4-B of the Act and initiated penalty proceedings on this transaction. The case of the dealer-opposite party in the penalty proceeding was that it has deposited tax on the corresponding paddy for the manufacture of aforesaid rice. The assessing authority by order dated June 29, 1991 imposed penalty amounting to Rs.28,015. The order was confirmed by the first appellate autho....

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....he assessment year 1985-86 reads as under: "Where a dealer, in contravention of the terms and conditions laid down in sub-section (2) for the grant of a recognition certificate, sells or otherwise disposes of the notified goods, for the raw material of which he has been granted such certificate, he shall be liable to pay as penalty such amount, as the assessing authority may fix, which shall be not less than the amount of tax that would have been payable under the provisions of this Act on the sale of such notified goods in the State and not more than three times the amount of such tax." It may be noticed that this section was subsequently amended by U.P. Act No.17 of 1987 and sub-section (6) was substituted. A plain reading of the....