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TMI Blog2019 (1) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... lse' - it can ce construed that the word 'false' includes intentionally or knowingly or negligently untrue and a thing is called false when it is done, or made, with knowledge, actual or constructive, that it is untrue or illegal. In the instant case, the assessee was initially registered with Triplicane Assessment circle and it is stated that at the relevant point of time, these items were mentioned in the Registration Certificate - Subsequently, the assessee shifted his business operations to Coimbatore and obtained a Certificate of Registration from the Commercial Tax Officer, Coimbatore, which was issued on 02.05.2005, wherein, these items were included. Thus, the assessee, which is a Private Limited Company, was fully ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bstantial questions of law: The Tax Case (Revision Petition) is admitted on the following substantial questions of law: (i) Whether, in the facts and circumstances of the case, in the absence of finding of falsely represented , a penalty under Section 10-A of the Central Sales Tax Act, can be levied? (ii)Whether, in the facts and circumstances of the case, when packing material itself is eligible to be purchased as provided under Section 8(3)(b) of the Central Sales Tax Act, can the levy of penalty be sustained? And (iii)Whether, in the facts and circumstances of the case, finding of mens-rea is a necessary ingredient before imposing penalty under Section 10-A of the Central Sales Tax Act? 3. Heard Mr.N.Inbarajan, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was modified and reduced to ₹ 15,173/-. 6. The assessee not being satisfied with the said order had preferred an appeal before the Tribunal and the department also preferred an appeal to the Tribunal. The assessee's contention is that to levy penalty under Section 10-A of the CST Act, the assessing authority should have recorded that the registered assessee has falsely represented when purchasing any class of goods that goods of such class are covered by the Certificate of Registration and in the absence of any such finding with regard to the false representation, the penalty could not have been levied. The assessee placed reliance on the decision of the Full Bench of this Hon'ble Court reported in 148 STC 296. 7. The Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad with Section 10(A) of the CST Act. The Hon'ble Supreme Court referred to the meaning of the word, which defines the word 'false' on the following terms: According to Black's Law Dictionary (sixty edition), the word false has two distinct and well-recognized meanings: (1) intentionally or knowingly or negligently untrue; (2) untrue by mistake or accident, or honestly after the exercise of reasonable care. A thing is called false when it is done, or made, with knowledge, actual or constructive, that it is untrue or illegal, or is said to be done falsely when the meaning is that the party is in fault for its error. From the above definition, it is clear that the word 'false' includes intentionally or kn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.Next we move to decide as to whether the Tribunal was justified in increasing the penalty to 50% from that of 10% as imposed by the First Appellate Authority. We find from the impugned order the Tribunal has not given any reason to levy penalty as 50% or in other words the Tribunal has not given any reason as to why the penalty imposed by the First Appellate Authority requires to be increased, in the absence of any finding to the said effect. The order passed by the Tribunal to that extent calls for interference. Accordingly, while upholding the order passed by the Tribunal and deciding the substantial questions of law against the assessee, we modify the order of the Tribunal by deleting the levy of penalty as 50% and restoring the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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