9911796707
TMI Blog1996 (1) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as the U.P. Sales Tax Acts. It is engaged in the business of manufacture and sale of lapping abrasive powder for which it has set up a factory at Khanpur in the district of Bijnor. In the registration certificate granted to it under the Central Sales Tax Act, several goods were mentioned which it could purchase at a concessional rate of tax and which were intended to be used in the manufacture or processing of the goods. One such thing was diesel engine and alternator set. During the period relevant to the assessment year 1977-78, it purchased a diesel generating set for a sum of ₹ 6,00,000 and paid sales tax at the concessional rate in terms of section 8 of the Act. The assessing officer initiated proceedings under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le excuse to make use of the goods for such purpose. Admittedly, the diesel generating set that has been purchased by the dealer and that has been mentioned in the registration certificate was intended only to produce electricity for running the other plant and machinery for the manufacture of the lapping abrasive powder. Neither the assessing officer nor the Tribunal has mentioned that when the assessing officer granted the registration certificate, the dealer had mentioned some other use of the diesel engine and alternator or that the assessing officer was under the impression that the same would be used for some other purpose. Any other use of the diesel engine was not in contemplation of either the dealer or the assessing officer. After ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l generating set in question was not being used in running the plant and machinery and other allied purpose and was being used for a different purpose, e.g., the supply of electricity to residential houses. The dealer is not accused of having made any mis-statement while applying for the inclusion of the said item in the registration certificate and was using the generating set for the purpose that was in contemplation by the dealer as well as the assessing officer. In such circumstances, no penalty could be levied on the dealer for purchasing the diesel generating set against form C and paying tax at a concessional rate. The reliance on the case of Hira Sugar Industries v. Commissioner of Sales Tax 1993 UPTC 471 is misplaced because that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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