2014 (6) TMI 207

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.... the CST registration certificate and therefore, proposed to levy penalty at 150 per cent of the tax due on the turnover under section 10(b) of the CST Act. The assessee was granted 15 days time to file its objections. The assessee by its reply dated November 5,2005 stated that all sales tax affairs were managed by its accounts officer and he acted on the bona fide belief that the said machinery also enjoy concessional rate of tax at four per cent, and C forms can be issued by any registered dealer. Further it was stated that it took up the matter before the consultant, after receiving the notice dated October 21,2005 and that the accounts officer had no occasion to understand the provisions of law to that extent and the mistake committed w....

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....ot appear in the registration certificate in form B, a false representation would have been made?     (2) Whether when a plea of ignorance of law is taken, the correctness of which is also not doubted, can mens rea be justifiably infer-red?     (3) Whether the omission of the Tribunal to follow the binding judgment of the Full Bench of this honourable court reported in [2006] 148 STC 256 (Mad) [FB] (State of Tamil Nadu v. Nu-Tread Tyres) has resulted in the Tribunal deciding the question of law before it erroneously?" 7. We have heard Mr. Vasumithran, learned counsel appearing for the assessee and Mr. Manokar Sundaram, learned Additional Government Pleader (Taxes), for the State. 8. The short issue,....

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.... element of mens rea on the part of the assessee and that the conduct of the dealer was contumacious and they have deliberately violated the statutory provisions and what is stated is that the said item of machinery was not included in the CST registration certificate. The assessee in response to such notice submitted their explanation on November 5, 2005 setting out the fact that owing to the bona fide circumstances, they thought they would be entitled to the concessional rate of tax of four per cent. To substantiate such claim, the affidavit of the accounts officer of the assessee was also filed. The assessing officer did not outrightly reject the explanation offered by the assessee, but proceeded to partially accept the same and reduced ....