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1972 (11) TMI 83 - HC - VAT and Sales Tax
Issues:
Prosecution under section 29(2) of the Mysore Sales Tax Act for non-payment of tax levied under the Central Sales Tax Act. Analysis: The High Court of Mysore heard appeals filed by the State against acquittals in criminal cases concerning non-payment of tax under the Central Sales Tax Act. The question before the court was the competency of prosecuting under section 29(2) of the Mysore Act for non-payment of tax under the Central Act. The court noted that the cases involved default in paying tax assessed under the Central Act. Section 29(1)(d) of the Mysore Act deals with failure to pay tax assessed under the Mysore Act, not the Central Act. The court highlighted that section 9(2) of the Central Act pertains to the collection and enforcement of tax, not prosecution for non-payment. The Central Act does not designate default in tax payment as an offense. Section 10 of the Central Act specifies offenses, but default in payment is not included. Therefore, the court concluded that prosecuting for non-payment of tax under the Central Act using section 29(1) of the Mysore Act is inappropriate. The court emphasized that since the Central Act does not define default in tax payment as an offense, invoking section 29(1) of the Mysore Act for prosecution is invalid. The court highlighted the distinction between enforcement of tax payment and prosecuting for non-payment. As the Central Act does not criminalize default in tax payment, the court found the prosecution in these cases incompetent. Consequently, the court dismissed the appeals filed by the State against the acquittals in the criminal cases related to non-payment of tax under the Central Sales Tax Act. In conclusion, the High Court of Mysore ruled that prosecuting individuals for non-payment of tax assessed under the Central Sales Tax Act using section 29(1) of the Mysore Sales Tax Act is not permissible. The judgment clarified the legal distinction between enforcement of tax payment and criminal prosecution for non-payment, highlighting that the Central Act does not treat default in tax payment as an offense. Therefore, the court deemed the prosecution in these cases as incompetent and dismissed the State's appeals against the acquittals.
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