TaxTMI 
TaxTMI 
2018 (8) TMI 936
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....llate Tribunal came to be allowed in part. Being aggrieved by the same, this petition is filed. The learned counsel for the petitioner submits that the impugned order passed by the Appellate Tribunal is contrary to Section 10(a) of the Central Sales Tax Act, 1986 (for short 'the Act') which enables the authority to levy penalty in case if the person, fails to provide Form -C of Central Sales Tax Act. Since there is contravention he was punished with penalty under Section 10(a) of the Act. Hence, the order passed by the competent Authority is in consonance with the said provision. The Tribunal has not appreciated the case properly and allowed the appeal preferred by the respondent which is required to be set aside. While filing this pe....
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....ate Authority dismissed the appeal, upholding the penalty order dated 28/2/2014. The said order was the subject matter before the Appellate Tribunal. The submission of the learned counsel is that Form-C under the Act is for the purchase of machineries under concessional rate of tax. The respondent has misused the said purchase and his intention was to resale the machineries. The provision of concessional rate provided to a person is to purchase the machineries for his use for construction purpose; instead using the same for the different purpose is nothing but misusing the concession given to the person. Under these circumstances, the learned counsel submitted that the order of the Appellate Tribunal is liable to be set aside. The ....
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....oner justified issuing of penalty under Section 10(a) of the CST Act and also for the reason that in response to the proposition notice for the purpose of levying penalty, the respondent had not filed any objections before the Authority. Non-filing of objections has been taken note while levying penalty. We have heard the learned counsel for both the parties and gone through the papers made available. Even Form-C which is made available to the concerned to purchase machineries from outside Karnataka, the concession is in respect of levying lesser tax. When that being the case, the case of the petitioner is that the respondent has used Form- C, purchased the machineries not for bonafide use, but for resale purpose. In case, it was for the....
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....e which is salable by it. Therefore, it was entitled to purchase a crane from Calcutta for using it to lift the blocks of granite to subject them to a process to bring the end-product to sale. It had not committed any offence under clause (d) of Section 10 of the Act and therefore, not liable for imposition of any penalty." The Full Bench of Madras High Court in the case of State of Tamil Nadu Vs. NU-TREAD Tyres C.S. with Parthasarathy Chetty v. State of Tamil Nadu [(2006) 148 STC 256 (Mad) (FB)], has held thus: "Section 10(b) of the Act provides for an offence if any person being a registered dealer falsely represents when purchasing any class of goods that goods of such class are covered by his certificate of registration. The expre....