STATE OF MADHYA PRADESH Vs. RAMSWARUP

JUDGEMENT

(1.) BY this judgment the connected Criminal Appeals Nos. 559, 560 and 561 of 1970 are also disposed of as all these appeals arise out of a common judgment. The State has preferred these appeals against the acquittal of the respondent for the offence under Section 46 (1 ) (c) of the M. P. General Sales Tax Act, 1958, for having not paid without reasonable cause the taxes assessed in different years.

(2.) THESE appeals arise out of Criminal Cases Nos. 83/67 (97/70), 84/67 (96/70), 85/67 (95/70) and 86/67 (94/70) instituted as per orders of the Assistant Commissioner of Sales Tax. It is not in dispute that the respondent was a registered dealer under the M. P. General Sales Tax Act, 1958 and also under the Central Sales Tax Act, 1956. The four cases are for not paying taxes as per four assessment orders for different periods ranging from 1st November, 1959, to 8th November, 1961. In Case No. 83/67 as per assessment order dated 24th November, 1964, the respondent was assessed to tax of Rs. 3,193. 26 for the period 21st October, 1960, to 8th November, 1961. In Case No. 84/67 as per assessment order dated 2nd September, 1964, the respondent was assessed to tax of Rs. 836. 25 for the period 1st November, 1959, to 20th October, 1960. In Case No. 85/67 as per assessment order dated 2nd September, 1964, the respondent was assessed to tax of Rs. 131. 36 for the period 1st November, 1959, to 20th October, 1960. In Case No. 86/67 as per assessment order dated 24th November, 1964, the respondent was assessed to tax of Rs. 10 for the period 21st October, 1960, to 8th November, 1961. In all these cases, the respondent was served with demand notice to pay the taxes assessed within 30 days of the receipt of the notice. It is also not in dispute that the respondent neither preferred any appeal nor he has paid the taxes as demanded. Therefore, these four challans were filed as per orders of the Assistant Commissioner of Sales Tax under Section 46 (l) (c) of the M. P. General Sales Tax Act for the respondent having without reasonable cause failed to pay the taxes. The respondent abjured his guilt and submitted that his house valued at more than 1 lac rupees was attached and he was served with a prohibitory order dated 20th November, 1963, for recovery of taxes amounting to Rs. 2,973. 06 towards earlier assessments, restraining him from alienating the property and thereby he was prevented from raising funds for payment of taxes and, as such, there was reasonable cause for not paying the taxes. The respondent further contended that he was not liable for assessment to tax as he was dealing with tax-free goods, some of the sales were in the course of inter-State sales, the respondent was merely a commission agent, the transactions were on behalf of his principals and he could not be assessed for those transactions and the respondent was given instalments to clear off his dues. The respondent did not give any evidence in his defence. The learned trial Magistrate, on consideration of the evidence on record, negatived the contentions of the respondent regarding the validity of the assessment orders holding that the said orders could not be challenged in these prosecutions and should have been challenged before the appropriate forums constituted under the Act and the respondent has also not given any evidence to show how the assessments were invalid. However, the trial Magistrate gave the benefit of doubt to the respondent saying that it could not be said that non-payment of taxes were without reasonable cause, as the valuable house of the respondent was under attachment by the sales tax authorities and he was prevented from alienating his property. There was nothing on record to show that besides this attached property, the respondent was in a position to clear off the taxes.

(3.) THE only question for consideration is whether it could be said that the respondent without reasonable cause failed to pay the taxes within the time allowed. The learned counsel for the State submitted that even the tax of Rs. 10 assessed for the period 21st October, 1960, to 8th November, 1961, was not paid proving beyond doubt that the taxes were not paid without reasonable cause, while the learned counsel for the respondent submitted that even if another view can be taken that the respondent had without reasonable cause failed to pay taxes, still that cannot be a ground for interference in this appeal against acquittal.