1963 (4) TMI 43 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Applicability of Section 13(3)(b) of the Mysore Sales Tax Act for recovery of tax under the Central Sales Tax Act.
2. Whether Section 403 of the Criminal Procedure Code bars the proceedings in C.M.C. No. 44 of 1962.
3. Legal liability to pay the penalty under Section 13(2) of the Mysore Sales Tax Act for default in payment of tax under the Central Sales Tax Act.

Issue-wise Detailed Analysis:

1. Applicability of Section 13(3)(b) of the Mysore Sales Tax Act for recovery of tax under the Central Sales Tax Act:
The court examined whether the Commercial Tax Officer could utilize Section 13(3)(b) of the Mysore Sales Tax Act to recover tax due under the Central Sales Tax Act. The petitioners did not seriously dispute the correctness of this proposition. The court noted that Section 9(3) of the Central Sales Tax Act allows the Sales Tax Officer to seek the court's help under Section 13(3)(b) of the Mysore Act for tax collection. The court concluded that the Magistrate was correct in issuing a warrant for the attachment of the respondents' movables under Section 13(3)(b) of the Mysore Act.

2. Whether Section 403 of the Criminal Procedure Code bars the proceedings in C.M.C. No. 44 of 1962:
The petitioners contended that Section 403 of the Criminal Procedure Code barred the proceedings in C.M.C. No. 44 of 1962 because the same prayer had been made and not granted in a previous petition (C.C. No. 487 of 1962). The court found that the Magistrate in the previous case had not considered or refused the prayer for proceedings under Section 13(3)(b) of the Mysore Act. Therefore, the court held that there was no impediment to granting the same relief in the subsequent petition, and the Magistrate had not exercised a power of review improperly.

3. Legal liability to pay the penalty under Section 13(2) of the Mysore Sales Tax Act for default in payment of tax under the Central Sales Tax Act:
The petitioners argued that a defaulter under the Central Sales Tax Act is not liable for the penalty under Section 13(2) of the Mysore Act. The court analyzed Section 9(3) of the Central Act and Sections 13(1) and (2) of the Mysore Act. It concluded that Section 9(3) of the Central Act incorporates the provisions of the general sales tax law of the State, including penalties, for the effective realization of tax. The court held that the penalty under Section 13(2) of the Mysore Act is incidental to the process of tax payment and collection, and therefore, a dealer under the Central Act who defaults becomes liable to the penalty under Section 13(2) of the Mysore Act.

Conclusion:
The court dismissed the revision petition, upholding the Magistrate's order to issue a warrant for the attachment of the respondents' movables and confirming the applicability of the penalty under Section 13(2) of the Mysore Act for defaults under the Central Act. The petitioners' contentions were found to lack merit.