2020 (8) TMI 777

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.... the impugned order read as under: "The claim of the dealers that the commodity 'Oil' also includes Petroleum Products and Low Sulphur Heavy Stock Furnace Oil is one of the Petroleum Products is only farfetched. The sale of Low Sulphur Heavy Stock Furnace Oil is taxable at 14.5% under residuary entry 69 of Part-C of the First Schedule to the TNVAT Act, 2006. The Authority for Clarification and Advance Ruling has also in its procs. In ACAAR No.25/2015-16 dated 22.06.2015 has held that 'Low Sulphur Heavy Stock (LSHS) is taxable at 14.5% under Part-C of the First Schedule to the TNVAT Act, 2006..... It is, therefore, evident that the dealers have falsely represented when purchasing Low Sulphur Heavy Stock Furnace ....

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....k Furnace Oil from oil companies against C-Form was improper for the period in dispute namely the assessment years 2007-2008, 2009-2010 and 2011-2012. 6. It is the contention of the petitioner that since oil was included in the registration with effect from 06.06.2000, there was nothing irregular about procurement of Low Sulphur Heavy Stock Furnace Oil against C Form. 7. On the other hand it was the contention of the respondent that Low Sulphur Heavy Stock Furnace Oil does not feature in the CST Registration during the period in dispute and therefore petitioner was liable to pay penalty equal to 150% of the tax which ought to have been charged in terms of Section 10A of the Act. 8. The petitioner replied to respective notices issue....

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....72. 13. On the merits reference was made to the decision of this Court rendered in State of Tamil Nadu Vs. Nu.Tread Tyres (2006) 148 STC 256 and to the decision of this Court in State of Tamil Nadu Vs S.D.Rangwala and Co (1988) 108 STC 521 and in West Coast Industries (Exports) Private Limited Vs. State of Tamil Nadu (2013) 57 VST 373. 14. It has been specifically stated that to impose penalty under Section 10-A of the Central Sales Tax Act, 1956, the department must prove the existence of facts and circumstances constituting the offence and an assessee cannot be held guilty of offence under section 10(b) if the assessee entertained a bona fide belief. 15. On behalf of the respondent it was contended that the petitioner has an alte....