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TMI Blog2014 (11) TMI 1056X X X X Extracts X X X X X X X X Extracts X X X X ..... could possibly have formed the belief and quite honestly that "etc." would cover those articles. Section 10(b) is a penal provision and where a question arises whether an offence has been committed or not, the dealer who is accused of the offence is entitled to the benefit of the doubt. This is not a case where it can be said that the dealer with the full knowledge of the falsity of the representation made the declaration in the form C issued by him. Therefore, in the light of the language employed in the section and the nature of penalty contemplated, it is difficult to say that all types of omission or commission in the use of form C will be embraced in the expression "false representation". Finding of mens rea is necessary for levy of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 2003-04 proposing penalty for purchasing unauthorisedly from outside U. P. hut material for the assessment year 2000-01 against form C. The assessing authority by order dated November 1, 2003, passed ex parte order, and imposed maximum penalty of ₹ 5,81,304 on purchases of ₹ 38,75,360. The question in this case is whether the assessee a registered dealer made false representation in the declaration in form C issued by him. Both Revenue as well as Tribunal have concurred and held against the assesse on the point, the only difference being that the penalty was reduced by the first appellate authority. The application for registration mentioned the goods as material to be used for Yamuna Bridge Project . I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which was false to the knowledge of the company, and the knowledge that there would be liability under this section for false representation. Thus, in the light of the language employed in the section and the nature of penalty contemplated, it is difficult to say that all types of omission or commission in the use of form C will be embraced in the expression false representation . Finding of mens rea is necessary for levy of penalty under section 10(b) read with section 10A of the Act. The honourable Supreme Court in Commissioner of Sales Tax v. Sanjiv Fabrics [2010] 35 VST 1 (SC); [2010] 44 NTN 69, held as follows (para 37, page 13 in 35 VST): 22. In view of the above, we are of the considered opinion that the use of the expres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by its registration cannot be said to be false, it was, thus a case in which it could not be said that the dealer had made a false statement and no penalty can be levied unless the representation is false to the knowledge of the dealer. The court in Commissioner, Trade Tax, U. P., Lucknow v. Project Technologist Pvt. Ltd., Gajaraula [2012] 48 VST 406 (All); [2012] 48 NTN 137, held as follows (page 433 in 48 VST): . . . Cable and light fitting material may not be said of such material which is not used in the welding machines, grinding machines and the lighting works at the time of execution of works contract of pipe fitting and compressor works executed by the assessee for Gas Authority of India Ltd., Babrala. Hence, I find no subs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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