P. Govindan Nair, J.

1. The question is whether the petitioner is guilty of the offence under clause (d) of section 10 of the Central Salestax Act, 1956, for short the Act, and this question has been referred to a Division Bench by a single Judge of this Court because it involves some important issues. The relevant part of section 10 is in these terms:

"10. Penalties. If any person

(a) * * *

(b) * * *

(c) * * *

(d) after purchasing any goods for any of the purposes specified In clause (b) of sub-section (3) of section 8 fails, without reasonable excuse, to make use of the goods for any such purpose;

(e) * * *

(f) * * *

he shall be punishable with simple imprisonment which may extend to six months, or with fine, or with both; and when the offence is a continuing offence, with a daily fine which may extend to fifty rupees for every day during which the offence continues."

2. Section 10-A of the Act enables the imposition of penalty in lieu of prosecution in the case of an offence under any of the clauses (b) or (c) of section 10, and the section provides that the authority who granted to the offender the certificate of registration under the Act may impose by way of penalty a sum not e