COMMISSIONER SALES TAX Vs. BHAWANI PAPER MILLS LTD

JUDGEMENT

(1.) Heard Sri B.K. Pandey, learned standing counsel, appearing for the revisionist and Sri Bharat Ji Agarwal appearing for the respondents.

(2.) This sales tax revision has been filed against the judgment and order dated 4th November, 1991 passed by the Sales Tax Tribunal Bench-I, Allahabad dismissing the second appeal filed by the Commissioner of Sales Tax against the judgment and order dated 22nd December, 1989 passed by this Assistant Commissioner allowing the appeal of the assessee.

(3.) An order under Section 10-A of the Central Sales Tax Act, 1956 (hereinafter referred to as the Act) was passed by Sales Tax Officer dated 25th July, 1989 imposing penalty on the assessee. The Sales Tax Officer found that assessee purchased, goods utilising Form-C which goods were not covered under Section 7 of the Act. The reply of the assessee that dyes, colour, starch, lubricants and caustic soda are included in chemicals was not accepted. The assessee filed an appeal before the Assistant Commissioner (Judicial) which appeal has been allowed by the appellate authority vide its order dated 22nd December, 1989. The appellate authority held that assessee bonafidely imported the goods treating them to be covered by his registration certificate under Section 7 of the Act and there being no deliberate misrepresentation in purchasing the goods by Form-C, assessee is not liable to be fastened with any penalty. The appellate authority also observed that caustic soda which has been imported by the assessee is used in industrial unit and it cannot be said that the said item is not included in chemicals. The cotton linter purchased by assessee is also a type of cotton wastes. The soap stone and soap stone powder have been purchased treating themselves to be chemical. The appellate authority recorded finding that there was no malafide on the part of assessee in importing the said goods and Form-C was issued under bonafide belief that the said articles were covered by registration certificate, hence there does not appear any violation of Section 10(b) of the Act. Second appeal was filed by the department which too has been dismissed by the second appellate authority vide its judgment and order dated 4th November, 1991