Penalty u/s. 10(d) of CST Act without mens rea untenable: Allahabad HC

Bajaj Hindusthan Sugar Ltd. Vs Commissioner Commercial Tax U.P. Lucknow And Anr. (Allahabad High Court) Allahabad High Court held that imposition of penalty under section 10(d) of the Central Sales Tax Act [CST Act] in absence of mens rea is untenable in law. Accordingly, order of penalty is liable to be quashed. Facts- The petitioner with an intent to set up a manufacturing facility in the State of U.P. were procuring various materials and keeping cement for construction of the premises and during the course of such construction used the cement after procuring the same within the State and ou...