1957 (7) TMI 29 - HC - VAT and Sales Tax

Summary

Issues: Conviction under section 15(a) of the Madras General Sales Tax Act for failure to submit wholesale sales return. Interpretation of "wilful" submission of false return.

In this judgment by the Madras High Court, the appellant was convicted under section 15(a) of the Madras General Sales Tax Act for failing to submit a return for wholesale sales for the months of April, May, and June 1954. The appellant, a proprietor of a business, admitted to not submitting the wholesale sales return due to a mistaken belief that it could be submitted at the end of the year. The central issue revolved around whether the appellant's failure to submit the return constituted a "wilful" act as required by the Act. The court examined various legal precedents to interpret the term "wilful" in this context. The appellant's argument was based on the contention that the omission was not intentional but a result of misunderstanding the legal requirement. The court considered previous decisions highlighting that "wilful" exclusion involves deliberate intent and knowledge of the act, excluding cases of inadvertence or mistake but not ignorance of the law.

The court analyzed the appellant's conduct and concluded that the omission of wholesale sales from the return was intentional, even though based on a mistaken belief about the submission timeline. The court found the appellant guilty of wilfully submitting a false return. However, considering the circumstances, the court reduced the sentence from three weeks of simple imprisonment to a fine of Rs. 100, stating that it would meet the ends of justice. The judgment emphasized that the appellant's mistaken belief did not absolve him of the intentional exclusion of wholesale sales from the return, leading to the conviction under the Act. The court dismissed the petition, confirming the conviction but modifying the sentence to a reduced fine.