Judgment

HEGDE, J. :- We find no merit in this Appeal. The Respondent is carrying on the business of manufacturing of cement at Sawai Madhopur under the name and style "Jaipur Udyog Limited" and is registered under Section 7 of the Central Sales Tax Act 1956 (which will hereinafter be referred to as the Act). In the certificate of registration the business of the Respondent was described as "wholly manufacture of cement." The Respondent claimed liability to pay tax at the preferential rate of 1 per cent, under Section 8 (1) read with Section 8 (3) (b) of the Act which includes "machineries". The Respondent purchased from outside the State of Rajasthan earth-moving machinery comprising bull-dozer, dumpers and tipping wagons during the period August 5, 1957 to March 31, 1959 on payment of tax under the Act at the preferential rate. The Assessing Authority held that the Respondent was not entitled to have the benefit of the preferential rate of tax on the above-said purchases and imposed a penalty of Rs. 50,000/- under S. 10A of the Act. In Appeal the Deputy Commissioner, Sales-Tax (Appeals) modified the order of the Assessing Authority and reduced the penalty to Rupees 28,000/- on the