Commission agent treated as dealer under sales tax law, making non-payment of assessed tax prosecutable

A commission agent dealing in goods may fall within the statutory expression "dealer" under the Madras General Sales Tax Act, 1939. On that basis, once tax has been assessed and demand served, non-payment can attract prosecution under Section 15(b) if the person remains liable within the Act. The criminal court was concerned with the existence of unpaid assessed tax by a person covered by the statute, not with irrelevant observations made in the appellate tax proceedings. The acquittal was therefore unsustainable, and liability for prosecution and recovery of the assessed tax was affirmed.

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Issues: Whether a commission agent dealing in goods falls within the expression "dealer" under the Madras General Sales Tax Act, 1939, and whether non-payment of assessed tax justified prosecution under Section 15(b).

Analysis: The assessment for the relevant turnover had been made and demand served, but the accused resisted prosecution on the footing that he was only a commission agent and not a dealer. The Court held that this contention could not avail him because the expression "dealer" was wide enough to include a commission agent. The trial court had also proceeded on an irrelevant view of the appellate tax authority's observations, whereas the real question in the criminal prosecution was whether the assessed tax remained unpaid by a person falling within the Act. The Court further held that the accused was an assessee within the scope of the Act and was liable to pay the tax.

Conclusion: The accused was liable to prosecution for non-payment of tax, and the acquittal was unsustainable.

Final Conclusion: The conviction was restored and the assessed tax was made recoverable as a fine, with the appeal succeeding.

Ratio Decidendi: For purposes of sales tax liability under the Act, a commission agent may fall within the statutory expression "dealer", and once assessment and demand are established, non-payment can attract prosecution under the penal provision.

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