BIMAL KUMAR Vs. VISHRAM LEKHRAJ MENGANANI

JUDGEMENT

(1.) THE present application has been filed under section 482 of the Code of Criminal Procedure for quashing the proceedings pending in Criminal Complaint No. 114/1988 in the Court of the Judicial Magistrate, First Class, 3rd Court, Nagpur.

(2.) THE respondent (hereinafter referred to as the Complainant) is a waste paper merchant and is carrying on his business of selling waste paper under the name and style of "jagdish Trading Company" at old Reshamoli, Itwari, Nagpur. The petitioners are the accused. The petitioner No. 2 is a paper manufacturing company incorporated under the Companies Act, as a public limited company and petitioner No. 1 is the Managing Director of the said company with its paper mill manufacturing factory at Sihore (Madhya Pradesh ). It was purchasing waste paper from the complaint for its factory. The company was liable for sale-tax assessment in regard to the sales purchase transaction at the hands of the Sales Tax Authorities. The company used to place orders with the complainant for supply of waste paper. It appears that one of the conditions of the said transaction was that the central sales-tax was 4% subject to the supply of C form by the company. The transaction being interstate sale it was governed by the Central Sales-Tax Act and the transaction was, therefore, attracting the sales tax at the lesser rate of 4% instead of usual 10% provided the purchaser i. e. the company send the requisite C form duly filled in to the supplier i. e. the complainant. There seems to be no dispute that the company did sent C forms for some years and the complainant in turn used to pay sales tax at the rate of 4% in his assessment of sales tax before the Sales-Tax Authorities at Nagpur. There is no dispute that the company used to send C forms for one or two years together. The relevant averments in the complaint to this effect are as under :

(3.) IT is further averred in the complainant that from 6-7-1983 upto 27-12-1984 the company failed to send a single C form even thought during the period waste paper was supplied under 52 bills viz. , 29 in the year 1983-84 and 23 in the year 1984-85. According to the complainant the company was not in a position to get C" forms from the Sales Tax Authorities at Sihore on account of its a accumulated Sales Tax Arrears, which was a result of the precarious financial position of the company.