COMMISSIONER SALES TAX Vs. UNITY CHAINS NAI MANDI

JUDGEMENT

(1.) The Commissioner of Sales Tax has challenged the order dated November 30, 1990 passed by the Sales Tax Tribunal in Second Appeals No. 871 of 1985 and 572 of 1985 for the assessment years 1979-80. The said appeal arose out of proceedings under Section 15-A(1) of the U.P. Sales Tax Act, 1948 (hereinafter referred to as "the Act").

(2.) The assessee, who is a manufacturer of iron chain, applied for grant of recognition certificate under Section 4-B of the Act for the purchase of raw material on concessional rate of tax/total exemption. The recognition certificate was initially granted although the assessee was not entitled for the same. Subsequently, penalty proceeding under Section 15-A(1)(1) of the Act was initiated and the assessing officer by means of an order dated October 14, 1983 imposed penalty to the tune of Rs. 17,000. The penalty order was set aside by the first appellate authority and the same has been confirmed by the Tribunal by the order under revision.

(3.) I have heard Sri Vipin Pandey learned Standing Counsel for the department and Sri Piyush Agrawal for the assessee. The relevant portion of Section 15-A(1)(1) of the Act is quoted below :