COMMISSIONER OF TRADE TAX Vs. RANA INDUSTRIES

JUDGEMENT

(1.) This revision is at the instance of Commissioner of Sales Tax under Section 11 of the U.P. Trade Tax Act, 1948 against the order dated May 16, 1994 passed by the Trade Tax Tribunal in Second Appeal No. 132 of 1994 for the assessment year 1991-92. The Tribunal by the impugned order has set aside the penalty proceeding under Section 10-A of the Central Sales Tax Act, 1956 (hereinafter referred to as "the Act").

(2.) The dealer-opposite party carried on the business of manu facture and sale of M.S. angles and bars, etc. It has obtained regis tration for the assessment year 1991-92 under Section 7(2) of the Act. The assessing authority initiated penalty proceeding under Section 10-A of the Act on the ground of misuse of form C. The case of the depart ment is that the dealer purchased "electronic weigh bridge" with P.C. computer system with keyboard and monitor by unauthorisedly issuing forms C Nos. 309775 and 379774. The dealer was not authorised to purchase these two items at the concessional rate of tax against form C. In reply to the show cause notice the stand of the dealer was that there is no misuse of form C and the aforesaid goods were purchased by issuing form C, as the dealer was authorised to purchase machinery against form C. The dealer treated these items covered under "machinery" as mentioned in his registration certificate.

(3.) The assessing authority levied penalty to the extent of Rs. 18,800 and held that the aforesaid items were not covered by the registration certificate and hence there was misuse of form C. The said order was confirmed by the appellate authority. The Tribunal in second appeal has set aside the entire penalty order on the ground that the assessee has not concealed purchase of the goods in question and there is no evidence on record that the appellant has tried to evade tax liability. This order of the Tribunal is under challenge in the present revision.