PUBLIC PROSECUTOR Vs. K V SUBBA RAO

JUDGEMENT

(1.) This is an appeal against the order of acquittal and is before us on reference by our learned brother Mohd. Mirza, J.

(2.) The short point to be determined is whether the non-payment of tax due for the year ending with 31-12-1957, after the demand notice has been served on the accused, constitutes a contravention of Sub-rule (7) of Rule 14-A of the Central Sates Tax (Andhra Pradesh) Rules 1957 to be held punishable under Rule 16 of the said Rules. It is common ground that the Rule 14-A was introduced in the Rules only in the year 1958 by G. O. Ms. 1805, Revenue dated 30-9-1958.

(3.) The facts of the case may be shortly stated. The 1st accused K. V. Subba Rao is the managing partner of the Firm, Messrs. Radha-krishna Rice Mill Contractors, of which all the four accused are the partners. They were carrying on business in Dosapadu in the year 1957-58 for which the accounting year ended on 31-12-1957. The Commercial Tax Officer assessed them on a turnover of Rs. 2,59,720 to a tax of Rs. 7,791-60 nP. The assessment proceedings were started in the year 1959. The accused had submitted no return, with the result that the Commercial Tax Officer had to make the assessment on the material available to him to the best of his judgment. He passed the assessment order on 15-1-1960 and sent demand notices to all the accused. The assessment order was served personally only on accused No. 1. The demand notices, however, were sought to be served on each of the partners. The 1st accused was served in person. Service on accused 2 and 3 was effected by affixture of the notices on their respective houses. Accused 4 refused to receive the notice, and it was affixed on his house. All the accused failed to pay the amount within the prescribed period. Proceedings were started under the Revenue Recovery Act, but with great difficulty, a sum of Rs. 1923-02 nP. could be collected and that from only the 1st accused. The balance due still was Rupees 5.868-58 nP. The Deputy Commercial Tax Officer after obtaining due sanction from the Commercial Tax Officer lodged a criminal complaint before the Munsif Magistrate, Gudivada.