2019 (1) TMI 1296

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.... in C.T.S.A.79 of 2009 dated 04.03.2015. 2. The Tax Case (Revision) was admitted on 02.09.2015 on the following substantial questions of law: "The Tax Case (Revision Petition) is admitted on the following substantial questions of law: (i) Whether, in the facts and circumstances of the case, in the absence of finding of "falsely represented", a penalty under Section 10-A of the Central Sales Tax Act, can be levied? (ii)Whether, in the facts and circumstances of the case, when packing material itself is eligible to be purchased as provided under Section 8(3)(b) of the Central Sales Tax Act, can the levy of penalty be sustained? And (iii)Whether, in the facts and circumstances of the case, finding of mens....

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....e difference in tax. Thus, the penalty levied by the Assessing Officer at Rs. 3,33,457/- under Section 10-A of the CST Act, 1956 was modified and reduced to Rs. 15,173/-. 6. The assessee not being satisfied with the said order had preferred an appeal before the Tribunal and the department also preferred an appeal to the Tribunal. The assessee's contention is that to levy penalty under Section 10-A of the CST Act, the assessing authority should have recorded that the registered assessee has falsely represented when purchasing any class of goods that goods of such class are covered by the Certificate of Registration and in the absence of any such finding with regard to the false representation, the penalty could not have been levied. T....

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....sideration, was whether the requirement of mens rea is an essential ingredient for the levy of penalty under Section 10(b) read with Section 10(A) of the CST Act. The Hon'ble Supreme Court referred to the meaning of the word, which defines the word 'false' on the following terms: "According to Black's Law Dictionary (sixty edition), the word "false" has two distinct and well-recognized meanings: (1) intentionally or knowingly or negligently untrue; (2) untrue by mistake or accident, or honestly after the exercise of reasonable care. A thing is called "false" when it is done, or made, with knowledge, actual or constructive, that it is untrue or illegal, or is said to be done falsely when the meaning is that the party....