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TMI Blog1994 (10) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... ucts. It is registered under the Sales Tax Act and had obtained a registration certificate enabling it to purchase certain goods for re-sale and certain other goods for use in the manufacture or processing of goods for sale. Amongst the goods required for use in the manufacture or processing of goods for sale were included plant and machinery. The revisionist purchased a generator for production of electricity from a dealer outside U. P. and availed a concessional rate of tax by the issue of Form-C to the selling dealer. The assessing officer took the view that the generator is not a plant or machinery required for use in the manufacture or processing of goods for sale and, therefore, the revisionist was not entitled to purchase the generat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealer purchased the generator. The view taken in the said case is not of universal application and relates to a particular industry where the crushers are used only for crushing cane to extract cane juice and the other processes resulting in the production of sugar have to follow. It is doubtful if the same view can be taken vis-a-vis rotating machine which ultimately produce sugar. If the generator is used to run those machines it may not be possible to have the same view. In the case of present assessee it is engaged in the business of preservation and production of fruits product and refrigeration is continuously required and electricity is also continuously require for maintaining the refrigeration system. 5. Learned counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onist acted bona fide in purchasing the generator under Form-C and making a statement that this machinery was covered by its registration certificate 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. This was, therefore, not a case in which the penalty under Section 10 (b) of the Central Sales Tax Act could be levied. The revision petition is, accordingly, allowed and setting aside the order of the Tribunal, it is ordered that the revisionist's second appeal before the Tribunal stands allowed and the penalty in question is hereby cancelled. - - TaxTMI - TMITax - CST, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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