COMMERCIAL TAXES OFFICER SRI GANGANAGAR Vs. SARDUL TEXTILES MILLS

JUDGEMENT

(1.) THIS revision is directed against the order of the Rajasthan Sales Tax Tribunal, Ajmer, dated January 31, 1986, whereby the appeal of the department was dismissed. Two questions of law have been urged in the present revision petition :- (1) Whether, in the facts and circumstances of the case, the Tribunal was justified in setting aside the penalty of Rs. 2,950 imposed under section 5c (2) of the Rajasthan Sales Tax Act. (2) Whether, in the facts and circumstances of the case, the Tribunal was justified in setting aside the tax and penalty imposed in respect of sales made by M/s. Sardul Textiles Mills in its canteen account under section 16 (1) (c ).

(2.) THE Commercial Taxes Officer by his order dated 12th October, 1976 determined the tax liability in respect of the canteen sales to the tune of Rs. 450 and imposed penalty of Rs. 900 for non-submission of the quarterly returns and further found that the assessee purchased silicate, tinopole and caustic soda to the tune of Rs. 33,622 under section 5c against the S. T. form No. 17. THEse articles were not raw materials as none of them became ingredients of the finished product and as such after notice to the assessee, imposed a penalty of Rs. 2,950 under section 5c (2 ).