BENTEC RUBBERS P LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) The question raised in this appeal is whether the appellant has committed an offence under S.10(d) of the Central Sales Tax Act, 1956 (hereinafter referred to as the 'Act') for the reason that the goods purchased by it by issuing C forms would not satisfy the provisions contained under S.8(3)(b) of the Act.

(2.) Appellant, who is an assessee on the file of the Addl. Sales Tax Officer, 3rd circle, Thrissur, effected inter state purchase of machinery, chemicals etc. by issuing C Forms. They used the goods in the manufacture or processing of tread rubber as job work for M/s. Vikrant Tyres Ltd. It is the admitted case of the appellant that M/s. Vikrant Tyres Ltd. Mysore utilised the finished product received from the appellant for manufacture of tyres and the end product namely, tyres were brought to sale by M/s. Vikrant Tyres Ltd. The relevant assessment years are 1981-82,1982-83 and 1983-84.

(3.) Assessing authority found that the appellant had effected inter state purchase issuing C forms to the tune of Rs. 15,85,619.01, Rs. 2,17,310.77 and Rs. 11,245.16 for the assessment years 1981-82,1982-83 and 1983-84 respectively. According to the assessing authority, since these goods were used for manufacture or processing of goods for a third party on job work basis, the assessee failed to satisfy the provisions in S.8(3)(b) of the Act. It also found that purchases amounting to Rs. 50,005.83, Rs. 8,422.95 and Rs. 2,900/- for the years 1981-82,1982-83 and 1983-84 respectively were unauthorised as they were not covered by the class or classes of goods mentioned in the CST registration certificate issued to the assessee. On this ground, the assessing authority found the appellant guilty of offence under S.10(b) and 10(d) of the CST Act. Penalty under S.10A to the extent of Rs. 2,37,840/-, Rs. 32.590/- and Rs. 1,680/- was also imposed for the three years.