Tarun Agarwala, J. - (1.) THE applicant is a registered dealer under the U.P. Trade Tax Act as well as under the Central Sales Tax Act. The registration has been granted under Section 7(2) of the Central Sales Tax Act in respect of various goods, which are required for the use in the manufacture of goods, namely, urea. The present revision is against the Assessment Year 1988 -89, whereby, penalty has been imposed under the Central Sales Tax Act. The Assistant Commissioner (Assessment) Trade Tax, Bareilly imposed a penalty under Section 10A of the Central Sales Tax Act in respect of various items on the ground that the applicant was not entitled to purchase the same against Form C.
(2.) AGAINST the aforesaid penalty order, the applicant filed an appeal, which was dismissed and the order of penalty was confirmed. The applicant being aggrieved by the order of the Deputy Commissioner (Appeals), filed a second appeal before the Trade Tax Tribunal, which was partly allowed and the order of the penalty was modified. The Tribunal on various items accepted the contention of the applicant and set aside the order of the penalty on some of the items. The applicant, being aggrieved by that part of the order of the Tribunal, whereby penalty on some of the items was imposed, has filed the present revision. Heard Shri Bharatji Agrawal, the learned Senior Advocate, assisted by Shri Arvind Saran Das, Shri S.M.K. Chaudhary, and Shri Piyush Agrawal, Advocates, and Shri Sanjeev Shankhadhar, the learned Additional Chief Standing Counsel for the Department.
(3.) THE learned Senior Counsel submitted that he is confining his submission only to two items, namely, the penalty imposed on the purchase of Effluent Treatment Plant and on the purchase of stitching thread, whereby penalty of Rs. 5,68,951.00 and Rs. 16,452.48 respectively was imposed. The Tribunal, while affirming the order of the penalty on the aforesaid two items, held: - - "......We are of the view that Effluent Treatment Plant is not the integral part of the Urea manufacturing plant because the treatment plant requires to minimize the evil effect of effluent which flows after manufacture of Urea and which is made of various chemicals of dangerous nature which is hazardous to health of human beings and catties etc. and it is the dirty and filthy discharge which requires treatment and for purchase of that the issue of Form C is not proper. Likewise, for purchase of stitching thread worth Rs. 4,11,312/ -, the Form C has been issued. From the perusal of the registration certificate, it transpires that stitching thread was included in the registration certificate vide order of the Assistant Commissioner (Assessment) -I, Bareilly, dated 17 -10 -96, w.e.f. 31 -3 -1995 the issue of Form -C for purchase of stitching thread is irregular.....";