M S GOPALASAMI CHETTIAR Vs. SECRETARY OF STATE FOR INDIA IN COUNCIL

JUDGEMENT

(1.) THE plaintiff, now appellant, sued to recover a sum of Rs. 6,300 from the Government in the following circumstances. In 1913, he started the Salem Knitting Factory and remained its proprietor until March 1923, when he sold it to the Salem Industrials. THE factory produced cotton bananas and it is not disputed that its products were liable to duty under the Cotton Duties Act II of 1896. Although the duty was payable monthly, no steps were taken to collect it until February 1923, when the Revenue Divisional Officer called upon the plaintiff to submit a return showing the quantity and value of goods produced in the factory up to December 31, 1922, so that the duty might be assessed and levied. THE plaintiff did not answer this reference, and a further demand was made on April 5, 1923. This also met with no response and on July 11, the Revenue Divisional Officer passed orders assessing the goods produced at the factory from its establishment up to the end of 1922 at Rs. 6,300. THE plaintiff, who had as already stated ceased to be the proprietor, paid this sum in instalments under protest and filed this suit to recover it as an illegal levy. He bases his claim upon three separate grounds; firstly, that no duty can be assessed or collected in the absence of a return made by the proprietor; secondly, that the Act does not provide for the collection of arrears, thirdly, that the liability, if any, has devolved upon the company which purchased the mill.

(2.) TO understand the first contention it is necessary to look at some of the provisions of the Cotton Duties Act. Section 6 directs that there shall be lived and collected at every mill in British India upon all cotton goods produced in such mill a duty at the rate of 3 1/2 per centime of the value of such goods. Under Section 8 the owner has to prepare and deliver to the Collector each month a return of the cotton month, stating the quantity and value. This return has to be delivered within three working days and at most within seven days of the period to which it relates. Sub-sec. 1 of Section 9 runs as follows :-