Goda Raghuram, J.

Heard Sri Venkat Raman, Senior Advocate, instructed by Mr. R.Raghunandan, learned counsel for the petitioners (in W.P.Nos.31462 & 31482 of 2011); Mr. S.Dwarakanath, the learned counsel for the petitioner in W.P.No. 8205/11; and Sri P. Balaji Varma, the learned Special Standing Counsel for the Commercial Taxes Department – respondents.

W.P.Nos. 31462/11 and 31482/11 question orders dated 07-10-2011of the Appellate Deputy Commissioner confirming penalty orders dated 14.10.2009 and 5.10.2009 passed by the 1st respondent (The Commercial Tax Officer, Begumpet Circle, Hyderabad), for assessment years 2009-10 and 2008-09, respectively. These writ petitions are by M/s Indus Towers Ltd. W.P.No. 8205/12 by M/s TVS Interconnected Systems Ltd., assails the order of the 1st respondent (the Asst. Commercial Tax Officer, Srinagar Colony Circle, Hyderabad), dated 29.2.2012 imposing penalty for assessment years 2006-07 to 2009-10. There is no appellate order in this writ petition. The impugned orders impose penalty under the Central Sales Tax Act, 1956 (the ‘CST Act’).

The relevant facts are not in dispute and as the writ petitions present a challenge to orders of penalty, on identical grounds we have taken up the writ petitions for hearing together and having heard the respective parties, proceed to the common judgment.

The relevant chronology of facts and events in W.P.No. 31462/11 are set out, as illustrative of the relevant facts and circumstances in the three writ petitions:

A) The Appellate Deputy Commissioner on 7.10.2011 rejected the appeal and confirmed levy of penalty imposed by the Assessing Authority by the order dated 14.10.2010. The penalty was imposed u/Sec. 10A r/w Sec. 10(d) of the CST Act.

B) The petitioner (the dealer) is in the business of providing telecom infrastructure support services to several telecom operators (such as Airtel, Vodafone, Idea, Reliance, Aircel, BSNl, etc.) and is a registered dealer under the provisions of the AP Value Added Tax Act 2005 (‘the 2005 Act’) and the CST Act.

C) The dealer builds, operates and maintains passive telecom infrastructure, also owned and controlled by it. Towards these operations the dealer -Rents/leases land on which to build the infrastructure;

Obtains the required statutory licenses for setting up the infrastructure, including the following elements:

(i) A tower;

(ii) A shelter/room;

(iii) Battery set and power plant;

(iv) Diesel generation set;

(v) Servo and static stabilizers and line conditioning equipment;

(vi) Air conditioners; (vii)Incoming EB connection;

(viii) Site electrical system; Surge protection system; and Lightning protection system

(ix) Civil construction

(x) Fire Alarm system.

D) Service is provided by the dealer to several telecom operators by enabling operation of their cellular and microwave antennas, which are mounted on towers installed by the dealer.

E) For establishing and maintaining the infrastructure the dealer purchases towers, shelters, generators, air conditioners, batteries and other equipment. The purchases on occasion, are inter-State.

F) The dealer claims that in view of provisions of Sections 8(1) and 8(3)(b) of the CST Act r/w Rule-13 of the CST (R and T) Rules 1957, it is entitled to purchase equipment for its business, in the course of inter-State trade at the concessional rate of tax of 2% from the selling dealer, provided the dealer is registered under the CST Act and issues Form ‘C’ declaration to the selling dealer. The dealer pleads that goods purchased by it against issue of Form ‘C’ declarations were for use as raw material, processing material, equipment/tools, stores, accessories, fuel or lubricants in the manufacture or processing of goods for sale or in the telecommunications network.

(G) The dealer applied for registration under the CST Act in Form-A on 04.03.2008. In Col.7 of the application described its business as a wholly telecommunication network service provider and in Col. 16, (which requi