M. C. AGARWAL, J. - (1.) This revision petition under section 11 of U. P. Sales Tax Act is directed against an order dated October 22, 1994, passed by the Sales Tax Tribunal, Moradabad, whereby it dismissed the dealer's second Appeal No. 247 of 1994 against the levy of a penalty amounting to Rs. 69,679 under section 10-A of the Central Sales Tax Act. I have heard the learned counsel for the revisionist and the learned Standing Counsel. The revisionist is a dealer registered under the Central as well as the U. P. Sales Tax Acts. It is engaged in the business of manufacture and sale of lapping abrasive powder for which it has set up a factory at Khanpur in the district of Bijnor. In the registration certificate granted to it under the Central Sales Tax Act, several goods were mentioned which it could purchase at a concessional rate of tax and which were intended to be used in the manufacture or processing of the goods. One such thing was diesel engine and alternator set. During the period relevant to the assessment year 1977-78, it purchased a diesel generating set for a sum of Rs. 6,00,000 and paid sales tax at the concessional rate in terms of section 8 of the Act. The assessing officer initiated proceedings under section 10-A of the Act for the levy of penalty on the ground that the diesel generating set was used for the production of electricity and not in the production of the said lapping abrasive powder and the diesel generating set was not directly connected with the production of the said goods. He, therefore, levied a penalty under section 10-A of the Act that was equal to 150 per cent of the tax payable. A first appeal failed. The dealer preferred a second appeal to the Tribunal. That too has upheld the levy of penalty under section 10-A in so far as the purchase of the diesel generating set was concerned. It placed reliance on a judgment of this Court in Hira Sugar Industries v. Commissioner of Sales Tax 1993 UPTC 471 in which it was held that in the manufacture of khandsari sugar, the generator and the alternator is not directly involved and, therefore, the assessing officer was justified not to include this item in the registration certificate of the sugar manufacturer. It is not in dispute that the diesel generating set that was purchased by the revisionist was mentioned in the registration certificate as one of the items that the dealer could purchase for use by him in the manufacture or processing of the goods. The penalty has been levied under section 10-A read with section 10 (d) of the Central Sales Tax Act which is attracted if any person after purchasing any goods for any purpose specified in clause (b) or (c) or (d) of sub-section (3) of section 8 fails without reasonable excuse to make use of the goods for such purpose. Admittedly, the diesel generating set that has been purchased by the dealer and that has been mentioned in the registration certificate was intended only to produce electricity for running the other plant and machinery for the manufacture of the lapping abrasive powder. Neither the assessing officer not the Tribunal has mentioned that when the assessing officer granted the registration certificate, the dealer had mentioned some other use of the diesel engine and alternator or that the assessing officer was under the impression that the same would be used for some other purpose. Any other use of the diesel engine was not in contemplation of either the dealer or the assessing officer. After the purchase of the diesel engine, the dealer used the same for the purpose of generating electricity for running its other plant and machinery, a purpose that was in contemplation of both the parties. It is not the case of the department that the diesel generating set was used for a purpose other than the production of electricity for running the plant and machinery for production of the goods. The assessing officer having included the diesel generating set in the registration certificate as an item which the assessee could purchase at the concessional rate for use in the manufacture of goods, it is not open to him to turn round and say that the use to which the generating set was being put, that is, the generation of electricity for running the plant and machinery, was not use contemplated while issuing the registration certificate. Penalty under section 10-A read with section 10 (d) can be levied only if the dealer after purchasing any goods for any of the purposes specified in clause (b), (c) or (d) of sub-section (3) of section 8 of the fails without any reasonable cause to make use of the goods for any such purpose. As pointed out above a diesel generating set has no other use except to produce electricity which is necessary for running the plant and machinery for the production of goods. It cannot therefore, be said that the dealer is using the generating set for any other purpose. It is not the case of the Revenue that the electricity produced by the diesel generating set in question was not being used in running the plant and machinery and other allied purpose and was being used for a different purpose, e. g. , the supply of electricity to residential houses. The dealer is not accused of having made any mis-statement while applying for the inclusion of the said item in the registration certificate and was using the generating set for the purpose that was in contemplation by the dealer as well as the assessing officer. In such circumstances, no penalty could be levied on the dealer for purchasing the diesel generating set against from "c" and paying tax at a concessional rate. The reliance on the case of Hira Sugar Industries v. Commissioner of Sales Tax 1993 UPTC 471 is misplaced because that was a case of refusal by the assessing officer to include the generator and alternator in the registration certificate of the dealer. Here, in the present case, the article in question was already mentioned in the dealer's registration certificate and the dealer having purchased the same, was using it for the very purpose for which it was intended to be used and the purpose that was in contemplation of the dealer as well as the assessing officer. For the above reasons, the revision petition is allowed and setting aside the Tribunal's order in so far as it relates to the levy of penalty on the purchase of the diesel engine and alternator, it is ordered that the dealer's appeal in this regard would stand allowed and the penalty quashed. The parties will bear their own costs. Petition allowed. .;