VEERASWAMI, C.J.

The revenue seeks to revise an order of the Sales Tax Appellate Tribunal by which it modified the penalty imposed. It is not in controversy, and, indeed, as found by the Tribunal, that the 'C' Forms had been misused and thereby an offences was committed within the scope of section 10(b) of the Central Sales Tax Act, 1956. The department levied penalty at 10 1/2 per cent on the view that, in the circumstances, the concessional rate would not be available and that the assessee would be liable to tax at 7 per cent under section 8(2). The Tribunal reduced the penalty to one and a half times the tax, as, in its opinion, for purposes of levying penalty, the rate of tax should be taken as that which would have been applicable if the offence had not been committed.

We think the Tribunal's view is correct. The department's view does not give effect to the concluding words of section 10-A, "if the offence had not been committed". The penalty under the section should not exceed one and a half times the tax which would have been levied under the Act in respect of the sale effected by the assessee if the offence had not been committed under section 10(b). The offence