INDIA PISTONS Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THESE tax revision cases have been filed by the assessee relating to the assessment years 1982-83, 1983-84 and 1984-85. Since the point involved is common, the tax cases are being dealt with by this common judgment.

(2.) THE assessee is a dealer who was found to have purchases steel flats from other States by issue of declarations in form C. THE steel flats were required for use in the manufacture of diesel engine parts. Verification of the certificate or registration in form B issued to the assessee under the Central Sales Tax Act, 1956 (hereinafter referred to as "the Act") revealed that they are not permitted to use the C forms for purchase of this particular commodity, i.e., steel flats. THEre was an inspection by the Enforcement Wing Officers on February 17, 1989, and it was then discovered that the assessee had purchased steel flats by issue of declaration in from C. THE assessing authority, after hearing the parties, recorded a finding to fact to the effect that the assessee-dealers were fully aware of the fact that they were not entitled to use the C form for purchase of steel flats, and in spite of this knowledge, they had used the declaration form for the purchase of steel flats. He noticed among other things that the assessee himself applied for inclusion of this item in the certificate of registration only on July 16, 1985. On the basis of this finding that the assessee had with full knowledge, that they were not entitled to use the C form for purchase of steel flats used the same, the assessing authority found that the provisions of section 10(b) of the Act, which provides that if any person, being a registered dealer, falsely represents when purchasing any class of goods that goods of such class are covered by his certificate of registration he is punishable, were attracted and therefore penalty under section 10A of the Act was called for, and it was accordingly levied.