Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Code of Criminal Procedure 1898 Liability to pay tax Using forged documents before Sales Tax Officer Sales Tax whether sales tax officer a Court |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Sales Tax—Using forged documents before Sales Tax Officer—Prosecution—If complaint of sales Tax Officer necessary—Sales Tax Officer, whether a Court—Liability to pay tax— Notification prescribing single point for taxation ineffective— Effect of Uttar Pradesh Sales Tax Act, 1948 (U. P. 15 of 1948), SS. 3, 3A, 14(d)—Code of Criminal Procedure 1898 (Act V of 1898), s. 195.The appellants who carry on the business in vegetable ghee purchased vegetable ghee from outside U. P. in the name of four fictitious firms. In their return of sales tax they did not include the sale proceeds of these transactions on the ground that they had purchased from the four firms and that under a notification made under s. 3A of the U. P. Sales Tax Act, tax was leviable only at a single-point on the sale by the outside suppliers to these four firms. In support of this the appellant No. 1 made a false statement before the Sales Tax Officer and also filed forged bills before him. The return was accepted by the Sales Tax Officer with the result that the sales covered by these transactions were not taxed. The appellants were tried and convicted for offence under s. 471 Indian Penal Code for using forged documents and under s. 14(d) of the Act for fraudulently evading payment of tax due under the Act. The appellants contended that the trial for the offence under s. 471 was illegal as no complaint had been made by the Sales Tax Officer as required by s. 195 Code of Criminal Procedure and that the offence under s. 14 (d) of the Act was not made out as no tax was payable under 3A because the notification issued thereunder was invalid. Held, that the Sales Tax Officer was not a Court within the meaning of s. 195 Code of Criminal Procedure and it was not necessary for him to make a complaint for the prosecution of the Appellants under s. 471 Indian Penal Code, A Sales Tax Officer was merely an instrumentality of the State for purposes of assessment and collection of tax and even if he was required to perform certain quasi-judicial functions. he was not a part of the judiciary. The nature of the functions, of a Sales Tax Officer and the manner prescribed for their performance showed that he could not be equated with a Court. Nor could he be said to be a Revenue Court. Though the definition of Court in s. 195 of the Code was enlarged by the substitution of the word “include” for the word “means” by the amendment of 1923, it did not change the definition of "Revenue Court.” Held, further that the appellants were rightly convicted under s. 14 (d) of the Act. Sales tax was payable under s.3 of the Act in respect of all sales. But under s.3A it was leviable only at a single point if the Government issued a notification declaring the point at which tax was payable and it was so prescribed by the rules. Under the notification issued by the Government tax was payable only by the dealer who imported the goods and sold them. The appellants having imported the ghee were liable to pay the tax on the sales of this ghee which they fraudulently evaded. Though the notification was ineffective as no rules were made under the Act prescribing the single point, it did not help the appellants, as the only effect of this was that s.3A did not come into play. In trying to get the benefit of the ineffective notification unders 3-A the appellants evaded payment of tax under s. 3 which they were liable to pay |
Judge | Hon'ble Mr. Justice J. L. Kapur |
Neutral Citation | 1962 INSC 195 |
Petitioner | Jagannath Prasad |
Respondent | The State Of Uttar Pradesh |
SCR | [1963] 2 S.C.R. 850 |
Judgement Date | 1962-05-03 |
Case Number | 152 |
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