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TMI Blog1991 (10) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... sessees did not enable them to issue "C" form certificates to purchase from outside the State at concessional rate of tax "oil engine spares" and, therefore the issue of "C" form certificate by the assessees was based on a false representation that they were entitled to purchase oil engine spares also on the basis of the registration certificate issued to them. The assessing authority invoked the provisions of section 10A of the Central Sales Tax Act, and after following the procedure prescribed by law, levied penalty, holding that the assessees had committed an offence under section 10(b) of the Act. The assessees went up in appeal before the appellate authority who confirmed the penalty, but reduced the same and refixed it. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel for the assesseesrespondents was unable to show that the "oil engine spares" are also used in rice mills which are run on oil engines and the assessees were under a bona fide impression that they could purchase oil engine spares also from outside the State by issue of "C" forms on the basis of their registration certificate. A similar plea has been raised on behalf of the assessees before the assessing authority as well as before the appellate authority and had failed. The Tribunal, had however, accepted this plea, but in our opinion, it had fallen in error in doing so. The Tribunal failed to take notice of the fact that the assessees are dealers in "rice mill spare parts and accessories". The registration certificate, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Since, all the authorities including the Tribunal did record a finding that the assessees-respondents had made a false representation, that would clearly attract the provisions of section 10(b) of the Act, and the existence of mens rea would be inherent in that finding. 4.. In Vijaya Electricals v. State of Tamil Nadu [1991] 82 STC 268 this Court had an occasion to consider in depth the ambit and scope of section 10(b) of the Act read with section 10A of the Act. The Bench held that section 10(b) of the Act postulates that if any registered dealer falsely represents when purchasing any class of goods that such goods are covered by the certificate of registration, he is liable to be punished to the extent contained in the section itself ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of an additional finding that the assessee also had the requisite mens rea, he cannot be penalised under section 10(b) of the Act. The argument has no basis and is absolutely far-fetched." The law laid down in the above decision of the Division Bench is fully applicable to the facts of this case. The Tribunal, therefore, in our opinion, fell in complete error, after recording the finding that the representation made by the assessee was false, to accept the plea of the assessees of acting bona fide and thereupon deleting the penalty. In the established facts and circumstances of the case, the assessing authority had rightly found that the representation made by the assessees, at the time of issuing "C" forms for purchasing the "oil engi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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