INDIAN SUGARS AND REFINERIES LTD Vs. COMMERCIAL TAX OFFICER HOSPET
HIGH COURT OF KARNATAKA
INDIAN SUGARS AND REFINERIES LTD
COMMERCIAL TAX OFFICER, HOSPET
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(1.)THERE is a plurality of reasons why this revision petition should succeed. The first is that although the proceedings for the compulsory recovery of sales tax under Sec. 13 of the Mysore Sales Tar Act, commenced against the Chief Executive of the petitioner-company, there was a direction by the Magistrate for the attachment of the property of the company which was not a party to those proceedings.
(2.)THE second is that during the pendency of this revision petition the company which is the assessee was permitted by Government to pay the arrears at sales tax in three instalments, one of which has been paid in time and the other is still to become due. That being so, the default which could authorise the commencement of proceedings under S. 13 of the Sales Tax Act and which might have existed when the prosecution commenced, since stands obliterated, and a proceeding for the recovery of sales tax under S. 13 of the Sales Tax Act becomes possible in consequence of the subsequent Govt. Order only when a default is again committed by the company in the payment of the amount directed by the Government Order. So, I allow this revision petition and quash the proceedings pending before the lower Court and all the orders made in it.
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