Sales tax recovery requires prior determination of liability; section 32 did not bar inquiry against an alleged transferee.

Section 32 of the Mysore Sales Tax Act, 1957 did not bar a criminal court from examining whether an alleged transferee of business was in fact liable for the amount claimed before recovery proceedings were taken under section 13(3)(b). The provision only prevents questioning an assessed or levied tax liability, and it did not apply where the petitioner had not been assessed or subjected to a levy. The court emphasised that liability had first to be determined by the proper authority, and a contrary reading would allow coercive recovery without prior determination. The petition succeeded and the impugned orders were quashed.

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Issues: Whether section 32 of the Mysore Sales Tax Act, 1957 barred the Magistrate from examining the petitioner's liability before proceeding under section 13(3)(b) to recover the amount claimed from an alleged transferee of business.

Analysis: Section 32 prohibits questioning, in criminal court proceedings, the validity of an assessment or levy and the liability of a person to pay tax, fee, or other amount so assessed or levied. The petitioner had not been assessed, and no levy had been made on him. The Act created different kinds of liabilities, including liability to pay amounts due under sections 14 and 15, which are not the same as tax assessed or amount levied. The provision was held not to extend to a person from whom money was merely claimed and whose liability had not yet been determined by the proper authority. An interpretation that would prevent scrutiny of such liability would offend natural justice and permit coercive recovery without prior determination.

Conclusion: Section 32 did not bar inquiry into the petitioner's liability. The Magistrate was required to determine whether the amount claimed was due from the petitioner before acting under section 13(3)(b). The petition succeeded and the impugned orders were quashed.

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