Firm as taxable assessee must face prosecution as such; complaint against only some partners is insufficient.

A prosecution for wilful failure to keep true accounts under the Madras General Sales Tax Act could not be maintained against only two partners where the firm, comprising three partners, was the taxable dealer. The court accepted that when a firm is the liable assessee, the complaint must be directed against the firm as such, or otherwise in a form that legally represents it; a complaint against all partners may satisfy that requirement, but proceeding against only some partners does not. The convictions and sentences were therefore set aside and the accused were acquitted.

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Issues: Whether a prosecution under the Madras General Sales Tax Act, 1939, for contravention of the duty to maintain true accounts could lie against only two partners of a firm when the firm itself, consisting of three partners, was the liable dealer.

Analysis: The prosecution was founded on Section 15(h) of the Madras General Sales Tax Act, 1939, for wilful contravention of Section 13 requiring every registered dealer and licensed person to keep true and correct accounts. The Court accepted the principle that where the firm is the assessee, the firm must be prosecuted as such and not only some of its partners. A complaint against all the partners could amount to prosecution of the firm, but a complaint against only two partners did not satisfy that requirement.

Conclusion: The prosecution against the two partners alone was not maintainable, and the convictions and sentences were set aside with acquittal of the accused.

Final Conclusion: Criminal liability for the sales tax offence could not be fastened on only some partners where the firm itself was the proper prosecuting entity, and the order resulted in acquittal of the petitioners.

Ratio Decidendi: Where a firm is the taxable assessee, prosecution for its tax offence must be directed against the firm as such, or in a manner that legally represents the firm, and prosecution of only some partners is insufficient.

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