Valid payment to authorised revenue officer discharges sales tax liability despite later misappropriation by the officer.

Payment of sales tax to the authorised Proverthicar under commenced revenue recovery proceedings was treated as a valid discharge binding on the State. Section 4 of the Travancore-Cochin Revenue Recovery Act authorised payment to that officer and entitled the payer to a receipt, and no particular form of receipt was required. Once recovery proceeded under the Revenue Recovery Act, Rule 15 of the sales tax rules did not restrict the payment. Later fraud or misappropriation by the officer could not defeat the payer's credit unless the payer was shown to have participated in the fraud. The State was required to give credit for the amount paid.

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Issues: Whether payment of sales tax to the Proverthicar under revenue recovery proceedings was a valid payment binding on the State, and whether the assessee was entitled to credit for the amount so paid despite the officer's subsequent misappropriation.

Analysis: The payment was made after demand under the Revenue Recovery Act had been served, and Section 4 of the Travancore-Cochin Revenue Recovery Act (VII of 1951) authorised payment to the Proverthicar and entitled the payer to a receipt. The provision did not require any particular form of receipt. Section 62 of the same Act made arrears of public revenue recoverable under that Act, and Section 13 of the Travancore-Cochin General Sales Tax Act (XI of 1125) treated unpaid sales tax as recoverable as arrears of land revenue. The limitation in Rule 15 of the Travancore-Cochin General Sales Tax Rules, 1950 did not affect recovery once proceedings under the Revenue Recovery Act had commenced. Since the Proverthicar was an authorised receiving officer, payment to him was valid. Any fraud or embezzlement committed later by the officer could not be set up against the payer in the absence of proof that the payer was party to the fraud.

Conclusion: The payment of Rs. 1,900 was a valid discharge, and the State was bound to give credit for it.

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