BHUVANESHWARI TRADERS Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assessee is registered under the Central Sales Tax Act, 1956 as a dealer. In the registration certificate obtained by him on November 25, 1975 the assessee was authorised to purchase "paints, varnish, turpentine, coal tar and pitch recin, chalk powder, brush, hardware materials, flint sand paper, emery sand paper and emery cloth". Grease, and adhesive were not included in the certificate. THE assessee nevertheless purchased grease and adhesive in the assessment year 1981-82 by using the "c" forms for that purpose. THE assessee had also purchased key chains worth about Rs. 2,100 during that period though the assessee had not been authorised to make use of "c" forms for that purpose. THE Commercial Tax Officer by his order dated June 4, 1983 in a proceeding under section 10-A of the Central Sales Tax Act, held that the purchase of grease, adhesive and key chain by using "c" forms and availing of the concessional rate of tax at 4 per cent in respect of those purchases was violative of section 10 (b) of the Act as these items "are distinct and separate items of goods and cannot be categorised as falling under the goods mentioned in the CST certificate". He, therefore, levied penalty of Rs. 26,670 being 1 1/2 times the tax payable at the rate of 10 per cent on the turnover of Rs. 1,77,801. 75 in relation to these three items. THE assessee's case before the Commercial Tax Officer was that these goods are allied or similar to the goods mentioned in the certificate of registration and, therefore, were covered by the registration certificate. That plea was rejected by the Commercial Tax Officer.

(2.) BEFORE the Appellate Assistant Commissioner, the assessee contended in addition to what had been contended before the assessing officer, that they had got grease and distemper included in the registration certificate on July 12, 1982 and this conduct was sufficient proof of their bona fides. The appellate authority accepted the assessee's case that it had issued the "c" forms under bona fide belief that the items were deemed to have been included in the registration certificate. Therefore, it allowed the appeal in respect of penalty that had been imposed relating to the purchase of grease and adhesives.

(3.) THE violations specified in clauses (b), (c) and (d) of section 10 of the Act are the following : " 10 (b) being a registered dealer, falsely represents when purchasing any class of goods that goods of such class are covered by his certificate of registration; or (c) not being registered dealer, falsely represents when purchasing goods in the course of inter-State trade or commerce, that he is a registered dealer; or (d) after purchasing any goods for any of the purposes specified in clause (b) or clause (c) or clause (d) of sub-section (3) of section 8 fails, without reasonable excuse, to make use of the goods for any such purpose;"