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TMI Blog2011 (6) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... o purchase JCB at concessional rate as a "tool" which only was covered by the certificate of registration issued to the petitioner at the time of purchase of the equipment. So much so, inter-State purchase of JCB against issuance of C form prior to inclusion of the same in the certificate of registration is a violation punishable under section 10(b) of the Act for which penalty could be levied in lieu of prosecution. We, therefore, uphold in principle the penalty levied on the petitioner under section 10A of the Act. We are in agreement with the contention of the petitioner that the offence is only technical. We, therefore, reduce the amount of penalty to 1 lakh (rupees one lakh only). X X X X Extracts X X X X X X X X Extracts X X X X ..... quot;construction tool" and he levied penalty at one and a half times the tax evaded. Even though the first appellate authority remanded the matter for re-consideration of the issue afresh, on second appeal, the Tribunal decided the case on merits by holding that the JCB is not a "construction tool" as claimed by the petitioner and on that basis they upheld levy of penalty. It is against this order of the Tribunal, the petitioner has come up with this revision. 3. A dealer registered under the Act is entitled to make inter-State purchase of goods covered by clause (b) of section 8(3) at concessional rate which are the following: ". . . goods of the class or classes specified in the certificate of registration of the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riations and cognate expressions, means any transfer of property in goods by one person to another for cash or deferred payment or for any other valuable consideration, and includes,-- (i) a transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration; (ii) a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract; (iii) a delivery of goods on hire-purchase or any system of payment by instalments; (iv) a transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; (v) a supply of goods by any unincorporated a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner contended that only by way of precaution the petitioner got the above items specifically included in the certificate of registration later and in fact it is a construction tool which was covered by the certificate originally issued to him. The Government Pleader, on the other hand, contended that the "tool" does not take in a massive equipment like the JCB and so much so the lower authorities including the Tribunal rightly rejected the petitioner's contention and confirmed penalty. There is no dispute on the legal position that under section 8(3)(b) of the Act, a registered dealer is entitled to make inter-State purchase of goods at concessional rate only if the goods purchased are of the class or classes specified in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act. So much so, contractors answer the description of processors of goods within the meaning of section 8(3)(b) of the Act and we therefore feel they are entitled to avail of concessional rate for purchase of the class of goods referred to in rule 13 abovestated. 9. The next question to be considered is whether the JCB purchased by the petitioner which is essentially used by the contractors for digging, levelling land, transporting earth, rubble within short distance, etc., is an item that falls within rule 13 of the Rules above extracted. The assessing officer himself concedes that the item falls within rule 13 and that is the reason why on specific application he allowed it's inclusion in it. So much so, the State probably cannot co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nclusion of the same in the certificate of registration is a violation punishable under section 10(b) of the Act for which penalty could be levied in lieu of prosecution. We, therefore, uphold in principle the penalty levied on the petitioner under section 10A of the Act. 10. Even though we have in principle upheld the violation and exigibility to penalty for misuse of C form, we are in agreement with the contention of the petitioner that the offence is only technical. We, therefore, reduce the amount of penalty to ₹ 1 lakh (rupees one lakh only). We, therefore, allow the O.T. revision case in part by modifying the orders of the Tribunal and that of the lower authority refixing penalty at ₹ 1 lakh (rupees one lakh only). The in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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