1957 (1) TMI 32 - HC - VAT and Sales Tax

Summary

Issues:
1. Whether the special Assistant Commercial Tax Officer (A.C.T.O.) had the authority to inspect the accounts at the rice mill.
2. Whether the actions of the accused in obstructing the inspection constituted offenses under the Madras General Sales Tax Act and the Indian Penal Code.
3. Whether the fines imposed on the accused were excessive.

Analysis:
1. The issue of whether the special A.C.T.O. had the authority to inspect the accounts at the rice mill was raised by the accused in both the lower courts and reiterated in the High Court. The contention was based on the argument that the special A.C.T.O. was not specifically mentioned in the notification authorizing inspection. However, the court held that the special A.C.T.O. falls within the definition of an A.C.T.O. for inspection purposes. The court referred to the provisions of the Madras General Sales Tax Act and the Commercial Taxes Manual, which authorized all A.C.T.Os. to inspect accounts and registers maintained by dealers. The court concluded that the special A.C.T.O. was entitled to the right of inspection, and any obstruction to such inspection would constitute an offense.

2. The accused's actions in obstructing the inspection by seizing and destroying the note books were considered by the court. The court found that the obstruction caused by the accused during the inspection amounted to offenses under section 15(c) of the Madras General Sales Tax Act and section 353 of the Indian Penal Code. The court also noted that aiding the principal offender would constitute abetment. The court dismissed the argument that the inspection during lunch hour was not valid, as it was deemed a reasonable time for inspection, allowing the proprietor to attend to the requirements of the inspecting officer.

3. The court addressed the issue of the excessive fines imposed on the accused. Despite upholding the convictions, the court considered the contrition shown by the accused and the apologies tendered to the officer. The court deemed the fines of Rs. 500 and Rs. 100 to be excessive and halved the amounts, ordering the excess amounts collected to be refunded. The sentence was modified accordingly, reflecting a reduction in the fines imposed on the accused.