M SDIWAKAR Vs. STATE OF MYSORE AND

JUDGEMENT

(1.) These are connected petitions. In these petitions, the petitioner is challenging the validity of the proceedings instituted against him before the City Magistrate of Bangalore by the second respondent under section 13(3)(b) of the Mysore Sales Tax Act, 1957. It is contended on behalf of the respondents that the petitioner is a transferee of the business formerly run by one H. Nagappa and therefore, he is liable to pay the arrears of tax due from Nagappa. The petitioner denies his liability to pay the tax in question. When he resisted the applications, the learned Magistrate refused to entertain his objections on the ground that no such objection could be taken before him in view of section 32 of the Mysore Sales Tax Act, 1957. The question for our decision is whether section 32 is applicable to the facts of the present case.

(2.) It is admitted that the petitioner was not assessed to tax though his alleged transferor was assessed to tax. It is also admitted that before proceeding against the petitioner, no opportunity had been given to him by the Sales Tax Authorities for establishing that he (petitioner) was not liable to pay the amount claimed. It is asserted on behalf of the Department that the petitioner is the transferee of Nagappa's business. But this assertion has not yet been examined. The petitioner had no opportunity to put forward his case. It was contended on behalf of the Department that the assertion of the second respondent that the petitioner is the transferee of Nagappa's business is not open to scrutiny by the Magistrate in view of section 32.

(3.) Section 32 of the Act says :- "The validity of the assessment of any tax or of the levy of any fee or other amount, made under this Act, or the liability of any person to pay any tax, fee or other amounts so assessed or levied shall not be questioned in any Criminal Court in any prosecution or other proceedings whether under this Act or otherwise."