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TMI Blog1951 (3) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... tax of Rs. 156 for the year 1948-49 on the turnover of his business. A demand notice was served upon him and he failed to pay the tax within the time allowed. Both of them were prosecuted under Section 20(b) of the Mysore Sales Tax Act. In both the cases, the receipt of the notice is admitted and the plea raised is 'not guilty'. They have challenged the validity of the tax. A preli- minary objection was raised by the prosecution that the Court is precluded from considering the validity of the tax which was overruled holding that the accused is perfectly at liberty to question or challenge the assessment or any other action taken by the authorities under the Act. On merits, the learned Magistrate held that the levy of the tax is justified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inition of a 'dealer' meaning any person who carries on business of buying and selling. Sections 5 to 9 of the Mysore Sales Tax Act provide for the grant of licences of exemption from taxation. Sections 10 and 11 deal with registration of dealers and collection of tax. The procedure to be followed by the Assessing Authority is prescribed in Section 12 under which every dealer is required to submit a return and the Assessing Authority shall assess the tax if he is satisfied that the return is correct and complete; if the return is not submitted or, if it appears to the Assessing Authority that the return submitted is incorrect and incom- plete the Assessing Authority shall assess the dealer to the best of his judgment, after giving a reasona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being questioned in civil Courts. Section 25 of the Act enables the Government to make rules to carry out the purposes of the Act and the rules made by the Government prescribe a detailed procedure to be followed in the levy of tax. Rule 30 empowers the Assessing Authority to fix provisionally the tax on the basis of a return, with the correctness of which if the Assessing Officer is satisfied; if he is not so satisfied, the officer may, after such enquiry, determine the turnover of the dealer to the best of his judgment and fix provisionally the annual tax payable. After the provisional assess- ment, the assessee is given an opportunity to file a return when the provisional assessment will be finalised. It is not disputed that in all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the correctness of the levy or the validity thereof. It is argued that Section 22 of the Act, which runs thus: "Save as provided in Section 16, no assessment made and no order passed under this Act or the rules made thereunder by any assessing authority shall be called in question in any civil Court and save as is provided in Sections 14 and 15, no appeal or application for revision shall lie against any such assessment or order", only precludes a civil Court from calling in question the assessment made and the assessee is free to raise the question in a criminal Court. As observed by Lord Uthwatt in the case referred to above at p.81: "Jurisdiction to question the assessment otherwise than by use of the machinery expressly provided for by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be said that the expressions "tax due" and "tax assessed" connote the same meaning. (1) [1951] 2 S.T.C. 35. (2) [1948] 1 S.T.C. 211. As there is fundamental difference between those expressions the deci- sion under the Madras General Sales Tax Act is inapplicable. The Madras Legislature amended the Act by adding Section 16(a) which bars the criminal Courts from entering into the legality or otherwise of the assessment. Even after the amendment the ruling is applied to the assessment for the period prior to the date of amendment. It is re- presented at the Bar that the Mysore Legislature has recently adopted an amendment of Section 22 by omitting the expression "civil" in Section 22 of the Mysore Act, which in effect precludes any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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