ORDER
Janarthanam, J.
1. Desirable it is to pen down a common order in both these actions, inasmuch as the assessee-dealers involved are one and the same relatable to two different assessment years, namely, 1990-91 and 1991-92. Besides, the issue failing for consideration is also one and the same relatable to the imposition of penalty under section 10A of the Central Sales Tax Act, 1956 (Act No. 74 of 1956 – for short “the CSTA”).
2. The assessee-dealers – Tvl. Mallur Siddeswara Spinning Mills (P.) Ltd., Athanur P.O., are registered dealers under the CSTA. It appears they have filed an application in form “A” for issuance of a certificate of registration in their favour incorporating certain items of goods, such as cement, iron and steel under the caption for resale on the basis of issue of “C” forms for availing concessional rate of taxation at four per cent. of inter-State purchases.
3. Pursuant to the application so filed by them, a certificate in form “B” it is said, had been issued to them. The assessee-dealers, on the basis of the certificate so issued to them, appeared to have purchased the goods so covered by the certificate of registration availing concessional rate of taxation at four per cent. in respect of the purchases made by them on inter-State, for the relevant assessment years. The goods so purchased by them it is said, instead of being resold, in fact, had been utilised for construction of buildings put up by them for the manufacture of cotton yarn. Consequently, the Deputy Commercial Tax Officer, Rasipuram, imposed penalty upon the assessee-dealers for the said assessment years on the said turnover at eighteen (18) per cent. under section 10A in lieu of prosecution under section 10 of the CSTA.
4. The assessee-dealers, aggrieved by the orders so passed, filed appeals in C.S.T. Nos. 109 of 1992 and 31 of 1993 before the Appellate Assistant Commissioner (C.T.), Salem.
5. The Appellate Assistant Commissioner, after taking into consideration the relevant materials available on record, ultimately reduced and penalty imposed on the sales turnover to 12 per cent.
6. The assessee-dealers did not stop there and agitated the matter further, by filing appeals in T.A. Nos. 313 and 314 of 1993, before the Tamil Nadu Sales Tax Appellate Tribunal (Additional Bench), Coimbatore-18 (for short, “the Tribunal”).
7. The Tribunal, in turn, of course, after taking into consideration the relevant material available in the file, confirmed the orders of the Appellate Assistant Commissioner, giving rise to the present actions – T.C. (R) Nos. 530 and 542 of 1995 by the assessee-dealers.
8. Mr. C. Natarajan, learned Senior Counsel representing Mr. N. Inbarajan, learned counsel appearing for the petitioner (in both cases) would in all sense of fairness, submit that he is not pressing the revisions on merits and the same may be disposed of on the quantum of imposition of penalty. He would further elucidate by stating that taking into consideration that the penalty proceedings had been hanging over the head of the assessee-dealers for quite long, causing agonizing situation, it would not be besides justice to further reduce the penalty, as had been imposed by the Appellate Assistant Commissioner and confirmed by the Tribunal, at a reasonable level, befitting the facts and the circumstances of the cases, to which course, Mr. K. Elango, learned Government Advocate (Taxes) representing the Revenue has nothing to say, except to leave the same to the discretion of this Court.
9. In the light of the submissions made by the said learned Senior Counsel appearing for the assessee-dealers and the view expressed by the said learned Government Advocate (Taxes) representing the Revenue, we rather feel that the quantum of penalty, as imposed by the Tribunal fixing it at twelve (12) per cent. on the said turnover for the relevant assessment years may be further reduced to six (6) per cent. on the turnover effected by the assessee-dealers for the two assessment years 1990-91 and 1991-92. We therefore direct the assessing officer to impose penalty upon the assessee-dealers for the said two assessment years on the turnover effected by them only at six (6) per cent. and collect the same accordingly.
10. Both these tax case (revisions) are thus disposed of. No costs.
11. Petition disposed of accordingly.