TMI Blog1950 (12) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... as not eligible for it under Sec- tion 8(2) of the Baroda Sales Tax Act. Later on, the Sales Tax Officer at Baroda found that his turnover was in excess of minimum taxable turnover and decided that his liability to pay the tax should begin from 11th February, 1948. The Sales Tax Officer while next examining the applicant's returns scrutinized his accounts and discovered discrepancies between the amounts paid for purchases and realised by sales made in his shop as recorded in his account books. The amount spent for purchases were found to be much more than the amount realised from the sales. After making inquiry, he made a report to the Deputy Commissioner of Sales Tax (through the Assistant Commissioner of Sales Tax) on 15th March, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the opponent raised the preliminary objection that no appeal or revision could lie to this Tribunal as there was merely composition under Section 26 of the Sales Tax Act and no order capable of appeal or revision. 4.. We think we have to uphold the objection though with very great reluctance. We think that what occurred amounted to compound- ing of the offences under Section 26 of the Act and nothing more. The correct procedure under that section would have been to ask the applicant to make his proposal in the matter and the Deputy Commis- sioner to accept it. If the latter wanted the composition money to be increased he could have then made the counter-offer accordingly and left it to the applicant to comply with his demand or face a pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der duress but the threat of prosecu- tion cannot in our opinion amount to coercion under Section 15 of the India Contract Act. We have further to say that if the applicant be so advised, he can approach the Civil Court to have it set aside. This Tribunal cannot help him. We think we must uphold the preliminary objection and reject the application. 5.. Before parting with this case, we cannot help referring to certain unsatisfactory features in the case. 6.. Sections 24 to 26 of the Act contain the penal provisions in- tended to prevent evasion of the payment of sales tax; and whatever name be given to the amount imposed by the Collector of Sales Tax under Section 26, it is in its nature penalty. We consider it necessary that before dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a petty dealer means ruin of his business. We will only say here that maximum penalties should be reserved for exceptionally bad cases. 8.. The next observation that we will make is that it would be better, if the question of prosecutions under Section 24 are considered only after the assessment proceedings out of which they arise are com- pleted, which will give the Collector a clear picture before he decides upon proceedings under Section 24 to 26. In this case we find that the Sales Tax Officer passed his order on 10th May, 1950, i.e., after the Deputy Commissioner had already treated the applicant as guilty and offered him composition. 9.. We were referred to the order of the Assistant Commissioner of Sales Tax, Baroda, copy of whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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