2022 (7) TMI 712

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....cond Appeal No. 109/2009. The Tribunal has dismissed the second appeal filed by the assessee and thereby confirmed the penalty order dated 11.5.2006 passed by the assessing authority under Section 10-A of the Central Sales Tax Act, 1956 (hereinafter referred to as the Act). Thus, the Tribunal has confirmed the levy of penalty Rs. 5,91,788/-. 3. Present revision has been pressed on the following question of law: "Whether in absence of finding of mensrea, which is condition precedent for levying penalty under Section 10(b) read with Section 10A of the Central Sales Tax Act?" 4. Having heard learned counsel for the parties and having perused the record, the penalty order cannot be sustained as the essential condition for imposit....

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.... any person being registered dealer falsely represents when purchasing any class of goods that goods of such class are covered by a certificate of registration. Thus for levying penalty under Section 10 (b) of the Act the dealer should falsely represent that the goods are covered by the certificate of registration. The word falsely implies deliberate act, which has been done knowingly. The false representation and wrong representation both stand on different footing. In the present case there is no finding by the Tribunal that there was any deliberate representation by the dealer. A line of distinction has to be drawn in between "false representation" and "wrong representation". "Wrong representation" may be on account of some inadvertence ....