TMI Blog1966 (5) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... es Tax Act (21 of 1947) (hereinafter called the Act). The challan was put up on 4th February, 1961. The learned Magistrate held that it was barred by time under section 26(2) of the Act. 3.. Section 26 of the Act runs thus: "26. (1) No suit, prosecution or other legal proceedings shall lie against any servant of the Government for anything which is in good faith done or intended to be done under this Act or the rules made thereunder. (2) No suit shall be instituted against the Government and no prosecution or suit shall be instituted against any person in respect of anything done or intended to be done under this Act unless the suit or prosecution has been instituted within three months from the date of the act complained of." 4.. L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accept this argument as it unduly strains the language of section 26(2). That sub-section has to be read with reference to the scheme of the Act. Section 8(1) enacts as follows: "8. (1) No dealer shall, while being liable to pay tax under this Act, carry on business as a dealer unless he has been registered as such and possesses a registration certificate................" And, section 24(1)(a) provides: "24. (1) Whoever- (a) carries on business as a dealer in contravention of subsection (1) of section 8..................shall, without prejudice to the recovery of any tax that may be due from him, be punishable.........." Thus, section 8 casts a duty on a dealer to get himself registered as such before he carries on business as dealer. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A complaint was filed against the partners of that firm on 1st July, 1957, on the ground that the returns filed by them were false and the accounts produced were incorrect and, therefore, an offence under section 24(1)(b) and (g) of the Act was committed. The accused raised an objection that the prosecution was barred by time under section 26(2) of the Act. Their Lordships referred to the relevant provisions of the Act. Under section 10, every dealer is required to furnish a return when called upon to do so and every registered dealer is required to furnish returns by such dates as may be prescribed. The appellants were registered dealers and they made their returns under that section. Section 15 deals with production and inspection of ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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