2019 (11) TMI 609

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....nd Appeal No. 28 of 2009 for A.Y. 2001-02 (Central Penalty). By that order, the Tribunal has partly allowed the assessee's appeal and confirmed the demand of penalty imposed under Section 10-A of the Central Sales Tax Act, 1956 (hereinafter referred to as the 'Act'). The assessee has been found guilty of having made false declaration by making use of statutory Form-C issued under the Act to import packing material which item was first recorded in the registration certificate of the assessee on 09.07.2001. 3. Present revision has been pressed on the following questions of law: "(i) Whether applicant is entitled to make purchase of packing material against Form-C in view of the provisions of Section 8(3)(d) of the Cent....

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....gister of declaration forms maintained under Rule 8 of the Central Sales (Uttar Pradesh) Rules, 1957 to establish that the assessee had been purchasing packing material against Form-C from the year 1990. These had been regularly examined and counter signed by the assessing officer while considering the fresh applications made by the assessee for issue of blank Form-C. Besides, examining the register entries, the assessing officer had also completed assessee's assessment proceedings for the earlier years without levying any penalty on account of Form-C having been utilised to import packing material. Therefore, it has been submitted that it was an established business practice of the assessee, duly disclosed to the revenue authorities....

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....rities for such long period would become relevant. 11. In this case, the assessee contends, the revenue authorities had in discharge of their statutory function, acknowledged the use of Form-C (by the assessee) to import packing material, by examining the register of utilisation of Form-C and signing the same in evidence of such examination and had further completed the assessment proceedings of the assessee for different years without imposing any penalty. 12. Therefore, in that case, clearly, the revenue authorities would have to be held to have contributed to the bona fide belief that such an assessee would claim to have arisen that it was entitled to make purchase of packing material at concessional rates, by issuing Form-C. 13....