The judgment of the Court was delivered by

T. U. MEHTA, J. - This reference arises out of the assessment of sales tax for the calendar years 1965 and 1966. During the course of the said assessment, the sales tax authorities have imposed penalty under section 10A of the Central Sales Tax Act, 1956, which is hereinafter referred to as "the Act", on the footing that the applicant-assessee has failed, without reasonable excuse, to make use of the goods for the purpose mentioned in clause (b) of sub-section (3) of section 8 of the Act. The Tribunal has, in this reference, referred the following two questions for our opinion :

"(i) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that there was no reasonable excuse on the part of the applicant within the meaning of section 10(d) of the Central Sales Tax Act, 1956, and thereby confirming the imposition of penalty under section 10A of the Central Sales Tax Act, 1956, though the penalty was reduced to certain extent ?

(ii) Whether, on a true construction of section 10A of the Central Sales Tax Act, 1956, the Tribunal was justified in rejecting the contention of the applicant that the