KOTTAYAM ELECTRICALS LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) The assessee, a company has come up in revision challenging the finding of the Sales Tax authorities and of the Tribunal that he is guilty of the offence under S.10(d) of the Central Sales Tax Act, 1956 (for brief the Act) and the consequent levy of penalty under S.10A of the Act. The assessee company is a registered dealer in electrical goods. It also undertakes works contract such as wiring. During the assessment year 1967-68 the Sales Tax Officer, on verification found that the company had used electrical goods purchased by it for execution of works contract. The purpose for which the goods were purchased as entered in the certificate of registration was 'resale'. The assessee company purchased electrical goods worth Rs. 9,948-60 by issuing 'C' Forms, and it was these goods that were used in the works contract undertaken by the company. Annexure A notice was therefore issued by the Sales Tax Officer proposing to take action under S.10A of the Act. Annexure B is the assessee's objections. The main contentions were that the use of the goods for distribution of electricity is permitted under S.8(3)(b), that goods were used only when they were not otherwise available and that therefore there was no mens tea, and there was 'reasonable excuse' for the use. Overruling the objections the Sales Tax Officer imposed a penalty of Rs. 1,193.88. Annexure C is the order of the Sales Tax Officer and therein it is said:

(2.) The Sales Tax Officer put the offence both under S.10(b) and (d) of the Act. The assessee appealed. The Appellate Assistant Commissioner also negatived the arguments based on mens rea and reasonable excuse:

(3.) On further appeal the Tribunal noticed that the assessee had no case that generation and distribution of electricity were included in its activities and that wiring was incidental to those activities. Regarding the contention that the assessee had reasonable excuse for the use, the Tribunal said: