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TMI Blog1989 (8) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... t if the terminal tax along with the penalty is not paid within four days, the goods will be sold at his risk. By a writ petition, the appellant challenged this demand before the High Court of Delhi and, by the impugned judgment, the Delhi High Court dismissed the writ petition and hence the present appeal. The High Court has considered the law of the Delhi Municipal Corporation Act, 1957, (hereinafter referred to as "the Act"), coupled with the provisions contained in the imposition of terminal tax and also examined the legislative competence of Parliament to enact the law and ultimately came to the conclusion that the law was applicable in the territory. There was also some controversy raised before the High Court in respect of the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He also referred to sections 469 and 470 and contended that, according to the scheme of this Chapter, the punishment provided in section 463 and the penalty (or fine) provided in section 464 could only be imposed by a magistrate after a proper trial. He also contended that the learned judges of the High Court, placing reliance on section 59 and the notification delegating the functions by the Commissioner to the terminal tax authority, came to the conclusion that, under section 464, it is the tax authority who has the jurisdiction to impose the penalty but, according to learned counsel, the residuary powers of the Commissioner under section 59 are only administrative powers and, according to him, the High Court was not right in placing rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court of a Magistrate. It was contended that, on the basis of this distinction, if the two sections 463 and 464 which are relevant are examined, it is clear that section 464 does not pertain to any offence and, therefore, the penalty thus imposed under this section is not a punishment which could only be inflicted under section 463 after conviction and, therefore, for imposition of penalty under section 464, the prosecution of the appellant before a competent Magistrate is not at all necessary. Learned counsel also contended that even the reading of the provisions of section 470 or 469 do not indicate to the contrary. As regards the authority of the tax authority to impose this penalty, learned counsel referred to the notifications which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of terminal tax, any person, who with the intention of evading payment of the tax introduces or attempts to introduce or causes or abets introduction of any such goods within the Union Territory of Delhi, upon which payment of terminal tax due on such introduction, has neither been made nor tendered, shall be punishable with fine which may extend to ten times the amount of such terminal tax. " It is significant that, in section 463, the language used is that "a person who brings the goods into the Union Territory of Delhi liable to terminal tax without the payment of tax shall on conviction be punishable." Whereas in section 464, the section talks of bringing the goods into the Union Territory on which terminal tax is due and is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her, "penalties", and the scheme of this Chapter indicates that so far as offences are concerned, they could be tried only by a competent criminal court and punishment could be awarded only after conviction whereas, so far as penalties are concerned, they could be imposed by the taxing authority itself. Even the language of section 470 or 469 does not help the appellant in any manner. It is no doubt true that, as regards the offences, a specific provision has been made in section 469 for appointment of a municipal Magistrate but, in respect of penalties, there is no specific provision authorising any officer or authority to exercise jurisdiction under the section where, for evasion of tax, penalty could be levied, like section 464 but it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d subject to any regulation that may be made in this behalf, dispose of all questions relating to the service of the said officers and other employees, their pay, privileges, allowances and other conditions of service; (c) on the occurrence or threatened occurrence of any sudden accident or any unforeseen event or natural calamity involving or likely to involve extensive damage to any property of the Corporation, or danger to human life, take such immediate action as he considers necessary and make a report forthwith to the Standing Committee and the Corporation of the action he has taken and the reasons for the same as also of the amount of costs, if any, incurred or likely to be incurred in consequence of such action, which is not cover ..... X X X X Extracts X X X X X X X X Extracts X X X X
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