2009 (12) TMI 854

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....ax Act, 1957 and Central Sales Tax Act, 1956 and registration certificate came to be issued as per annexure B dated September 1, 1996 permitting the petitioner to use cement and steel. The assessee has used the steel and cement purchased to its projects involving construction activities in the resort and health club and the said cement and steel was purchased from outside the State. After the purchase, the respondent has issued the C declaration forms. The audit wing of the Revenue noticed that the commodity purchased, namely, the cement and steel, has not been sold subsequently, after manufacture or processing and found the assessee had utilised it for its own use. On noticing the same, a notice under section 10A of the CST Act, 1956, cam....

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....ment Advocate for the respondent-Revenue. Sri Atul K. Alur submits that when the authorities themselves have issued the registration certificate and permitted him to make use of the cement and steel for construction of resort and health club, there was no justification for invoking the penal provisions, namely, 10A for imposing penalty on the assessee for not utilising the same as required under section 8(3)(d) of the CST Act and accordingly submits that the levy of the penalty requires to be set aside. He elaborates his submissions contending that neither the first appellate authority nor second appellate authority has considered these aspects and as such prays for allowing of the appeal and answering the question of law in favour of the ....

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.... has specifically taken a contention that there is no violation of section 10(d) of the CST Act. Thus, we find that the assessee has understood the contents of the show-cause notice and was aware of the nature of the penalty being levied, and now it cannot be permitted to raise this issue at the third appellate stage. Particularly, having not taken any specific grounds on this issue, the assessee has admitted the order of the adjudicating authority who levied the penalty on the ground that the assessee has not filed any objections to the show-cause notice and cannot be permitted to raise such a ground at this stage. Even otherwise at the first appellate stage the assessee having understood the contents of the showcause notice has specifical....