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TMI Blog2008 (4) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... n the manufacture of goods, namely, urea. 2. The present revision is against the Assessment Year 1988-89, whereby, penalty has been imposed under the Central Sales Tax Act. The Assistant Commissioner (Assessment) Trade Tax, Bareilly imposed a penalty under Section 10A of the Central Sales Tax Act in respect of various items on the ground that the applicant was not entitled to purchase the same against Form C. 3. Against the aforesaid penalty order, the applicant filed an appeal, which was dismissed and the order of penalty was confirmed. The applicant being aggrieved by the order of the Deputy Commissioner (Appeals), filed a second appeal before the Trade Tax Tribunal, which was partly allowed and the order of the penalty was mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Form C has been issued. From the perusal of the registration certificate, it transpires that stitching thread was included in the registration certificate vide order of the Assistant Commissioner (Assessment)-I, Bareilly, dated 17-10-96, w.e.f. 31-3-1995 the issue of Form-C for purchase of stitching thread is irregular….." 6. The learned counsel for the applicant submitted that the order of the imposition of the penalty on the effluent treatment plant and stitching thread is patently erroneous and was liable to be set aside. The learned counsel submitted that the effluent treatment plant is part of the plant equipment, which is stipulated in the registration certificate. Further, the thread includes stitching thread and is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lip;..The water treatment, steam generation and inert gas generation plants are part and parcel of the composite process that produces its end product urea, which is a fertilizer. These off-site plants are part of the process of the manufacture of urea. …………. It is too late in the day to take the view that the treatment of effluents from a plant is not an essential and integral part of the process of manufacture in the plant. The emphasis that has rightly been laid in recent years upon the environment and pollution control requires that all plants, which emit effluents, should be so equipped as to rid the effluents of dangerous properties. The apparatus used for such treatment of effluents in a plant manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der, dated 17-10-1996, issued by the Assistant Commissioner indicates that the same was only a clarificatory order clarifying the entry of thread. Consequently, the contention of the Tribunal that the exemption, if any, could only be obtained by the applicant from 31st March, 1995 onwards, is patently erroneous. In any case, the word "thread" indicated in the registration certificate of 31st January, 1985 would include stitching thread also. The mere fact that the Assistant Commissioner has clarified in its order of 31st March, 1985 will not mean that the word "thread" did not include stitching thread prior to 31st March, 1995. Consequently, the imposition of penalty on purchase of stitching thread against Form C was wholly illegal. 12.&em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeding one-and-a-half times the tax, which could have been levied under sub-section (2) of Section 8. 14. In State of Rajasthan v. Jaipur Udyog Limited, AIR 1973 SC 843, it was held that unless it was shown that the dealer had made a false representation, the penalty provision was not attracted. 15. In M/s. Sanjiv Fabrics, Baraut, Meerut v. Commissioner of Sales Tax, 2003 U.P.T.C. 1081, this Court held : - "If the assessee bonafidely believes that the goods are covered by Certificate of registration, but it ultimately turned out to be incorrect, it will not attract the provisions of Section 10-B of the Act. The use of word "falsely" implies that the persons making representation knew that certificate of registration does not c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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