Statutory bar on challenging sales tax assessment in criminal court; conviction sustained but fine reduced for bona fide confusion.

A sales tax assessment made under a statute with a complete appellate, revisional and reference scheme, and an express bar on court interference, cannot be challenged in a criminal court by disputing its legality or the classification adopted by the assessing authority. The proper remedy lies only through the statutory procedures. The court also treated the sentence as excessive in light of the confusion over the notification, the assessee's bona fide belief, and prior deposit of tax, so the fine was reduced while the conviction was maintained.

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Issues: (i) Whether the validity of a sales tax assessment could be questioned in a criminal court in the face of the statutory bar under the Mysore Sales Tax Act. (ii) Whether the fine imposed on conviction should be reduced in the circumstances of the case.

Issue (i): Whether the validity of a sales tax assessment could be questioned in a criminal court in the face of the statutory bar under the Mysore Sales Tax Act.

Analysis: The Act provided a complete machinery of appeal, revision, and reference for challenging assessments, and Section 22 expressly barred any court from questioning an assessment made under the Act. The assessment was treated as one made under the Act so long as it originated from the assessing authority acting under the statute, even if the assessee alleged that the underlying provision was ultra vires or that a more favourable classification ought to have been adopted. Any challenge to the assessment had therefore to be pursued through the statutory remedies and not by way of resistance in a criminal prosecution for default of payment.

Conclusion: The challenge to the assessment was not maintainable before the criminal court, and the bar under Section 22 applied.

Issue (ii): Whether the fine imposed on conviction should be reduced in the circumstances of the case.

Analysis: Although the conviction was maintained, the Court took note of the confusion surrounding the applicable notification, the petitioners' bona fide belief regarding their liability, and the fact that the tax had already been deposited. In those circumstances, the punishment of fine was considered excessive.

Conclusion: The fine was reduced from Rs. 100 each to Rs. 10 each while the conviction was confirmed.

Final Conclusion: The petitions succeeded only to the limited extent of sentence reduction, while the conviction and the statutory bar against questioning the assessment in criminal proceedings were affirmed.

Ratio Decidendi: Where a taxing statute provides a complete appellate and revisional mechanism and expressly bars court intervention, an assessment made by the assessing authority under that statute cannot be impeached in a criminal court on the ground that the assessment is illegal or based on an ultra vires provision.

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