- (1.) Heard Sri Bharat Ji Agrawal, Senior Advocte, assisted by Sri Piyush Agarwal, learned counsel for the revisionist and learned Standing Counsel for the respondents.
(2.) The revisionist-assessee M/s Triveni Engineering & Industries Ltd. (hereinafter referred to as "assessee") is engaged in manufacturing and sale of sugar, which is produced from crushing and processing of sugarcane. Besides sugar, bye-products, which also get produced are molasses, bagasse etc.. All the three revisions relate to assessment year 1998-99, 1999-00 and 2000-01.
(3.) The assessee purchased diesel against Form-C under Section 8(3)(b) of Central Sales Tax Act, 1956 (hereinafter referred to as "Act, 1956") and during the period of assessment, had shown use of said diesel in various activities like in generator as fuel, plant and machinery repair and maintenance, sugar bags press mud and bagasse handling, farm equipments maintenance and repair, and cane procurement. While Assessing Authority accepted his claim with regard to consumption of former three items, in respect to farms equipments repair and maintenance and Cane procurement, it held that two activities do not constitute part of manufacture for which diesel was authorised to be purchased against Form -C and, therefore, consumption of diesel in the said two activities was unauthorised hence assessee is liable to pay penalty under Section 10A for consumption of diesel against these two activities.;