Tax assessment under a fiscal code cannot be reopened in criminal prosecution for non-payment; statutory remedies must be used.

Under the Madras General Sales Tax Act, 1939, a prosecution for non-payment of assessed tax could not be used to challenge the validity or correctness of the assessment before the criminal court. The statute provided a complete machinery for assessment, appeal and revision, so the assessee had to pursue those remedies rather than mount a collateral attack in a prosecution under section 15(b). The Magistrate's role was limited to verifying that tax had been assessed under the Act, notice of demand had been served, and the amount remained unpaid within time; the court had no jurisdiction to reassess turnover or re-open the quantum. On that basis, the acquittals were set aside.

---

---

Issues: (i) Whether, in a prosecution under section 15(b) of the Madras General Sales Tax Act, 1939, the validity of the assessment made under the Act can be questioned. (ii) Whether, in such a prosecution, the Criminal Court has jurisdiction to adjudicate upon the correctness of the amount of tax assessed under the Act.

Issue (i): Whether, in a prosecution under section 15(b) of the Madras General Sales Tax Act, 1939, the validity of the assessment made under the Act can be questioned.

Analysis: The Act created a complete machinery for assessment, appeal, revision, and further challenge before the statutory hierarchy, and the duty to pay arose once tax was assessed under the Act and notice of demand was served. The expression "assessed under the Act" was construed as referring to an assessment made by the assessing authority acting under the statute, not as inviting a fresh inquiry into its legality before the Magistrate. In light of the statutory scheme and the principle that where a statute creates a liability and provides special remedies, those remedies must be pursued, the criminal prosecution could not be converted into a forum for collateral attack on the assessment.

Conclusion: The validity of the assessment made under the Act cannot be questioned in a prosecution under section 15(b).

Issue (ii): Whether, in such a prosecution, the Criminal Court has jurisdiction to adjudicate upon the correctness of the amount of tax assessed under the Act.

Analysis: The words of section 15(b) require proof that tax was assessed under the Act and remained unpaid within time; they do not authorise the Magistrate to reassess turnover or substitute a different quantum. The Court accepted the view that permitting the Criminal Court to reopen the amount would duplicate the statutory appellate process and create conflicting decisions, defeating the object of summary recovery. The proper course for the assessee was to contest the quantum before the authorities constituted under the Act, not in the criminal forum.

Conclusion: The Criminal Court has no jurisdiction to adjudicate upon the correctness of the amount of tax assessed under the Act.

Final Conclusion: The statutory assessment, once made under the Act and left unpaid within the prescribed time, furnished a sufficient basis for conviction under section 15(b), and the acquittals were set aside.

Ratio Decidendi: Where a fiscal statute provides a complete code for assessment and challenge of tax liability, a prosecution for non-payment of tax assessed under that statute cannot be used to reopen the legality or quantum of the assessment before the criminal court.

---