KOODAL INDUSTRIES LIMITED Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE only question to be decided in this tax revision case under section38 of the Tamil Nadu General Sales Tax Act, 1959, filed by the assessee, a manufacturer of wheat products, is whether the Sales Tax Appellate tribunal below is justified in confirming the penalty of Rs. 22, 125, imposed on the assessee for the assessment year 1979-80 under section10a of the Central sales Tax Act (hereinafter referred to as "the Act") read with section10 (b) of the Act. THE said penalty was levied on the ground that the assessee-petitioner misused the C forms, prescribed pursuant to section8 (4) of the Act, and purchased generators for Rs. 2, 21, 156 in the course of inter-State trade or commerce at the concessional rate of tax on the said inter-State sale under section8 (1) of the Act. While "generators" were not included in his registration certificate in form B issued under section7 of the Act, the goods mentioned in the said certificate for availing the said concessional rate are only, "machineries, accessories, mill stores and all other materials connected with flour milling". (No doubt, the penalty originally imposed by the assessing officer was Rs. 39, 826. But the Appellate Assistant Commissioner reduced it to Rs. 22, 125, which was subsequently confirmed by the said tribunal ).

(2.) ACCORDING to section10 (b) of the Act, if a registered dealer "falsely represents" when purchasing any class of goods that goods of such class are covered by his certificate of registration, he shall be punished under that section. ACCORDING to section 10a, penalty could be imposed in lieu of prosecution of the offence under section 10 (b ).