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TMI Blog1975 (3) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Otis lift by issue of C forms, the joint Commercial Tax Officer, T. Nagar Division, initiated proceedings under section 10(b) read with section 10A of the Act. The respondents replied by their letter dated 9th May, 1967, that Otis lift purchased by them would come either within the class of articles mentioned in category (b) of the certificate of registration or under category (c) as accessories of plant and machinery necessary to execute the contracts for studio hire. In support of their contention that the lift was indispensable for the manufacturing process carried on in their premises and, therefore, it would come within the class of goods mentioned in category (b), the respondents also filed an affidavit by their technical manag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich excluded the goods required for use in the execution of contracts from the category of goods which could be covered by the certificate of registration under that provision. On the other hand, the learned counsel for the respondents contended that Otis lifts will be covered in the class of goods referred to in category (b) of the certificate of registration. In any case, even if the legal position is that after the amendment of section 8 with effect from 1st October, 1958, the goods referred to in category (c) would not be included in the certificate of registration, still since the certificate itself was not called for and amended, the respondents bona fide believed that it could rely on category (c) as well. The first question, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of carrying out such work have to move and transport chemicals, raw films, laboratory accessories, sound equipments, camera equipments, editing equipments, etc. Though there are two flights of stair cases, one on the eastern side and the other on the western side, they could not be used for these purposes without detriment to their efficiency and that the lift is intended mainly for use in the manufacturing process. But, we are unable to agree with the learned counsel that merely because the lift could be used more beneficially for lifting these articles used in manufacturing processes than an ordinary flight of steps, it would come within the category of laboratory accessories or accessories necessary or incidental for the manufacturing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have been pro tanto modified. A similar question came up for consideration before the Supreme Court in Modi Spinning and Weaving Mills Co. Ltd. v. Commissioner of Sales Tax, Punjab[1965] 16 S.T.C. 310 (S.C.). In that case, the assessee-company purchased raw cotton in Punjab, ginned the cotton in its ginning mills in Punjab and sent the bales to its spinning and weaving mills situated in the State of Uttar Pradesh for purposes of manufacture of cloth. In computing its taxable turnover, the assessee claimed to deduct a certain sum on account of raw cotton purchased by it on a certificate of registration granted to it in which there was no condition that the goods were for use by the assessee "in the manufacture in the State of Punjab of go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 407., with reference to an offence under section 10(b) has held that mere representation based on a bona fide belief will not bring an assessee within the mischief of that provision. The representation in order to come under that provision should be a false representation to the knowledge of the assessee. If a belief is entertained by the assessee bona fide that the goods are covered by the certificate of registration, but it ultimately turned out to be not a proper understanding of the certificate of registration or correct understanding of the same, it will not attract the provisions of section 10(b). The use of the word "falsely" itself implies that the person making the representation knew that the certificate of registration does not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that they bona fide thought that it will be included in category (b) as well as category (c). But the Joint Commercial Tax Officer had not given any finding that the respondents either did not entertain any bona fide doubt or could not have entertained any bona fide doubt as to whether the certificate of registration covered this item and that, therefore, the offence under section 10(b) has been committed. In fact, even the Appellate Assistant Commissioner did not give any finding. We, therefore, have to sustain the order of the Tribunal though not on the same reasonings given by it. The petition accordingly fails and it is dismissed with costs. Counsel's fee Rs. 250. Petition dismissed. - - TaxTMI - TMITax - CST, VAT & Sales T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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