SHOETEK AGENCIES Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) This revision by the assessee is directed against the order dated April 29, 2009 passed by the Sales Tax Appellate Tribunal (Additional Bench), Chennai in S.T.A. No. 189 of 2007 for the assessment year 2004-05. Under the provisions of the Central Sales Tax Act 1956 ("the CST Act"), the assessee was issued a notice by the assessing officer dated October 21, 2005 stating that they have purchased machinery, which was not included in the CST registration certificate and therefore, proposed to levy penalty at 150 per cent of the tax due on the turnover under section 10(b) of the CST Act. The assessee was granted 15 days time to file its objections. The assessee by its reply dated November 5, 2005 stated that all sales tax affairs were managed by its accounts officer and he acted on the bona fide belief that the said machinery also enjoy concessional rate of tax at four per cent. and C forms can be issued by any registered dealer. Further it was stated that it took up the matter before the consultant, after receiving the notice dated October 21, 2005 and that the accounts officer had no occasion to understand the provisions of law to that extent and the mistake committed was only bona fide and not intentional and along with the explanation, the affidavit of the accounts officer was also filed. The assessing officer, by order dated November 30, 2005, did not accept the explanation of the assessee in toto to deny all the facts pleaded, but, however, reduced the penalty to 100 per cent of the tax due.

(2.) Aggrieved by the same, the assessee preferred appeal to the Appellate Assistant Commissioner. The Appellate Assistant Commissioner after considering the entire facts and the bona fides of the assessee, allowed the appeal.

(3.) Aggrieved by the same, the State preferred appeal to the Sales Tax Appellate Tribunal (the Tribunal) in S.T.A. No. 189 of 2007.