9911796707
TMI Blog1989 (10) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, under the provisions of rule 78 of the Gujarat Sales Tax Rules, 1970, the petitioner is sought to be prosecuted for offence of not complying with the provisions of rule 31 of the aforesaid Rules (in the petition wrongly translated as section of the Rules). Therefore, the Commissioner of Sales Tax exercising the power conferred upon him under the provisions of section 27(6) of the Gujarat Sales Tax Act, 1969, read with rule 79 of the aforesaid Rules sanctioned the prosecution against the petitioner-company. The order of sanction of prosecution dated July 12, 1988, is produced as annexure C to the petition. 2.. The petitioners pray that the aforesaid order produced as annexure C to the petition be quashed and set aside. Reliance is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipulated time. Meanwhile the dealer holds the amount not as the owner of the same but he is holding it in trust for being passed over to the Government. This money does not belong to the dealer nor does it belong to the members of this company or the directors of the company. Therefore, when any criminal proceeding is instituted on account of non-payment of such amount, it cannot be said that the proceeding is for the winding up of the industrial company or for execution, distress or the like against the properties of the industrial company. Therefore, the provisions of section 22 of the Act would not come in the way of launching of criminal prosecution under the provisions of the Gujarat Sales Tax Act, 1969, where it is shown that the amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the company and its property. Such proceedings can be launched with the consent of the Board or the appellate authority as the case may be. Therefore, even for taking the consent of the Board or that of the appellate authority, the Commissioner is required to sanction the prosecution. What is barred is initiation of the proceedings or further proceedings thereof. Sanctioning of the prosecution by the Commissioner of Sales Tax is a stage prior to the initiation of the criminal prosecution. There is no prohibition in the provisions of section 22(1) as far as the sanction of the prosecution is concerned. Therefore, challenge to the order passed by the Commissioner of Sales Tax on the basis of provisions of section 22 (1) of the Act can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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