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TMI Blog1955 (10) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... 1952 passed by the Additional First Class Magistrate II, Salem, and acquitted the accused. 3. The respondents are merchants dealing in hides and skins in Salem. Their business consists mainly in the purchase of hides and skins and exporting the same to foreign countries. The respondents were assessed to sales tax in different amount on their respective turnovers of purchases of skins made by them in pursuance of orders placed with them by foreign buyers for the supply of the same. The respondents having failed to pay the entirety of the amounts of sales tax so assessed, complaints were laid against them under Section 15(b) of the Madras General Sales Tax Act. 4. Before the Magistrate it was contended on behalf of the respondents that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rying fines with provision for simple imprisonment for 15 days in default of payment and also directed that the amount of sales tax remaining due from the respective respondents should be recovered as if the same were a fine. 6. Against their convictions, the respondents separately went up before the High Court in revision. The main controversy in the High Court centred round the validity or otherwise of Section 16A of the Madras General Sales Tax. After dealing at considerable length and in great detail with the respective contentions urged from different aspects, the High Court came to the conclusion that Section 16A of the Madras General Sales Tax Act was `ultra vires` the Constitution and the provisions of the Criminal Procedure Code a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents on which the prosecutions were founded, we do not considered it necessary on this occasion to expect any opinon on any of the question raised about the validity or otherwise of Section 16A of the Madras General Sales Tax Act. We have gone through the record carefully and we have come to the conclusion, for reason to be presently stated, that the grievance made by the respondents before the High Court was not well founded. 8.The prosecution was for non-payment of the assessed tax. The prosecution examined K.M. Narayan (P.W. 1), the Deputy Commercial Tax Officer, Salem town, in each of these cases. In his examination-in-chief he deposed to the fact of the respective assessment and to the fact of the non-payment of the assessed tax by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for export, used to send them to the London buyers. The evidence of the respective clerks quite clearly indicates that upon the shipping agent and the intermediary intimating that skins of certain types were required by the London buyers and after the price was settled with the intermediaries, the respondents would purchase the goods and forward the same to the intermediary and shipping agent for the purpose of exporting them to the London buyers. 9.There can be no doubt, on the evidence on record, that the object of the respondents was to avail themselves of the exemption from sales tax provided for in Article 286(1)(b) and to question the legality of the assessments on which the proseutions were based. It is, therefore, not correct to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpossible for the respondents, on the evidence adduced by them, to contend, in view of the majority decision referred to above, that the purchases were exempt from sales tax by virtue of Article 286(1)(b), that the assessments were illegal and that consequently the non-payment thereof was not an offence. In our view, the High Court erred in holding that the prosecution had failed to establish their case and in acquitting the accused. 10.Our attention was drawn by the learned Advocate for the respondents to the decision of this Court in - State Govt. Madhya Pradesh v. Ramkrishna Ganpatrao Limsey - AIR 1954 SC 20 and it was contended that these appeals are not maintainable as the High Court had no jurisdiction to grant certificates of fitne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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