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TMI Blog2014 (6) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... notice submitted their explanation on November 5, 2005 setting out the fact that owing to the bona fide circumstances, they thought they would be entitled to the concessional rate of tax of four per cent. To substantiate such claim, the affidavit of the accounts officer of the assessee was also filed. The assessing officer did not outrightly reject the explanation offered by the assessee, but proceeded to partially accept the same and reduced the levy of penalty to 100 per cent though the proposal was 150 per cent. Tribunal, while considering the appeal filed by the State, did not examine the facts of the case thoroughly rather it gave a peculiar finding that the assessee ought to have been careful enough to issue C form declaration onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of law to that extent and the mistake committed was only bona fide and not intentional and along with the explanation, the affidavit of the accounts officer was also filed. The assessing officer, by order dated November 30, 2005, did not accept the explanation of the assessee in toto to deny all the facts pleaded, but, however, reduced the penalty to 100 per cent of the tax due. 3. Aggrieved by the same, the assessee preferred appeal to the Appellate Assistant Commissioner. The Appellate Assistant Commissioner after considering the entire facts and the bona fides of the assessee, allowed the appeal. 4. Aggrieved by the same, the State preferred appeal to the Sales Tax Appellate Tribunal (the Tribunal) in STA No. 189 of 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The short issue, which falls for our consideration is as follows:- (1) Whether the Tribunal was justified in reversing the order passed by the Appellate Assistant Commissioner in deleting the penalty levied? (2) Whether the Tribunal has recorded any justifiable reason to reject the explanation given by the assessee as not been bona fide? 9. To decide the question raised in this case, we may straightaway refer to the decision of the Full Bench of this court in the case of State of Tamil Nadu v. Nu-Tread Tyres reported in [2006] 148 STC 256 (Mad) [FB]. In the said decision, the honourable Full Bench of this court held that the use of the word falsely in section 10(b) of the CST Act implies that the person making the represe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty to 100 per cent though the proposal was 150 per cent. On appeal, before the Appellate Assistant Commissioner, the first appellate authority, after taking note of the entire facts as well as the finding of the Full Bench judgment of this court cited supra, deleted the penalty. Unfortunately, the Tribunal, while considering the appeal filed by the State, did not examine the facts of the case thoroughly rather it gave a peculiar finding that the assessee ought to have been careful enough to issue C form declaration only in respect of such goods, which are authorised in the form B certificate issued to them. Such a finding would not be sufficient to uphold the penalty levied by the assessing officer. As held by the Full Bench of this cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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