1953 (7) TMI 8

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..... n the State in the manner described in the agreement. The stuff produced is exported by them as agents for and on behalf of the State under the agreement. When the firm was thus functioning, the Travancore General Sales Tax Act (XVIII of 1124) was passed. That Act provided for the registration of a dealer with the liability to pay a registration fee annually and for consequence of default in payme .....

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..... o pay the fee for registration, and during the time that registration subsists, it would appear to be an obligation arising out of the registration actually made and does not depend upon the liability to register. Registration having been in fact made, though under the circumstances above-mentioned, the petitioner cannot escape liability to pay the fee. Being agents of the State they might be enti .....

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..... alty that is demanded is sought to be justified by reference to this Section 20. Section 20, as already stated, provides for composition of the offence with the defaulter. Composition, as the word clearly indicates, is a bilateral act as a result of agreement between two parties and the State cannot impose a penalty upon a defaulter and collect the amount due as on composition when the defaulter i .....

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..... rs and will consider further as to the proper course to be adopted in this matter in the future so far as the petitioners are concerned. 3.. Another complaint raised in this application relates to the levy of sales tax for the years 1125, that is 1949-50, and 1950-51. Whether the latter is provisional assessment or final assessment does not appear to be clear. But whatever that may be, it makes .....

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..... allowed even if the initial levy was unjustified, are matters which should be considered by the State afresh and to enable the Government to do so and to adjust the rights of parties according to the law, the orders complained of may be vacated and the case sent back to the Sales Tax Officer concerned. The impugned orders are accordingly vacated, and the papers sent to the 1st respondent for the .....

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