1966 (7) TMI 69 - HC - VAT and Sales Tax

Summary

Issues:
1. Whether the execution petitions for the realisation of arrears of tax are barred by limitation.
2. Interpretation of section 15(h) of the Madras General Sales Tax Act, 1939, in relation to recovery of tax as if it were a fine.
3. Applicability of section 70 of the Indian Penal Code to the recovery of arrears of tax specified in the order.

Analysis:
1. The case involved two Second Appeals arising from orders passed by the Subordinate Judge, Palghat, regarding the realisation of arrears of tax under the Madras General Sales Tax Act. The appellant was convicted for default in payment and fined in two criminal cases. The warrants issued authorized the Collector to recover the fine and arrears of sales tax. The execution petitions sought to recover the arrears of tax only, not the fine. The appellant contended that the petitions were barred by limitation, which was rejected by the lower courts.

2. The main contention revolved around the interpretation of section 15(h) of the Madras General Sales Tax Act, 1939, which states that the tax specified is recoverable as if it were a fine. The appellant argued that this provision, along with section 386(1)(b) of the Criminal Procedure Code, should be subject to section 70 of the Indian Penal Code for limitation. However, the court disagreed, holding that the provision did not deem the tax as a fine but enabled its recovery through a specified process. Referring to previous judgments, the court emphasized that the expression "as if it were a fine" did not create a legal fiction but merely allowed for the recovery of tax in a manner similar to a fine.

3. The court rejected the appellant's argument that section 70 of the Indian Penal Code applied to the recovery of arrears of tax, as the statutory provision in question did not transform the tax into a fine. The court highlighted that the legislative intent was clear in enabling the recovery of tax as specified, without deeming it a fine. Therefore, the execution warrants issued under section 386(1)(b) of the Criminal Procedure Code were not subject to section 70 of the Indian Penal Code. The court dismissed the Second Appeals, upholding that the execution petitions were not barred by limitation under any other statute.

In conclusion, the court ruled that the execution petitions for the recovery of arrears of tax were not barred by limitation, as the provision in the Madras General Sales Tax Act did not equate the tax to a fine but enabled its recovery through a specified process. The court's interpretation emphasized that the legislative intent was to facilitate the recovery of tax, not to treat it as a fine for the application of penal provisions.