In Brief
The respondent, a fertiliser manufacturer, purchased natural gas at concessional rates under Form III-B but made stock transfers of finished goods outside Uttar Pradesh instead of selling them as permitted. The Revenue imposed a penalty, contending the Form III-B was false. The Supreme Court held that Section 3-B (false certificates) must be read harmoniously with Section 4-B(6). Section 3-B applies only when a false or wrong certificate is made; genuine use of raw materials as declared does not render the certificate false. When a dealer fails to comply with intended disposal methods, Section 4-B(6)—not Section 3-B—applies, providing specific consequences. The Court upheld the Tribunal's and High Court's decisions, dismissing the Revenue's appeal and annulling the penalty.
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