Central sales tax recovery through State machinery attracts statutory penalty on default, even without contumacious conduct.

An earlier application was not a bar to a later request for recovery under section 13(3)(b) because the Magistrate had not decided that prayer and had only dealt with the prosecution aspect; the later application was therefore treated as a continuation for that undisposed relief. A dealer who defaulted in paying Central sales tax became liable to penalty under section 13(2) of the Mysore Sales Tax Act because section 9(3) of the Central Sales Tax Act applied the State machinery for assessment, collection and enforcement, including the statutory consequence of default. The revision was rejected and recovery with penalty was sustained.

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Issues: (i) Whether the subsequent application under section 13(3)(b) of the Mysore Sales Tax Act, 1957 was barred because an earlier application seeking similar relief had already been made; (ii) whether a dealer who defaulted in payment of tax under the Central Sales Tax Act, 1956 became liable to penalty under section 13(2) of the Mysore Sales Tax Act, 1957 by virtue of section 9(3) of the Central Sales Tax Act, 1956.

Issue (i): Whether the subsequent application under section 13(3)(b) of the Mysore Sales Tax Act, 1957 was barred because an earlier application seeking similar relief had already been made.

Analysis: The earlier proceeding did not adjudicate the prayer for recovery under section 13(3)(b); the Magistrate had not applied his mind to that relief and had only dealt with the prosecution aspect. Where a prayer remains undisposed of, a later request for the same relief is not a review of an earlier decision. The later application could therefore be treated as a continuation of the earlier matter in respect of that prayer.

Conclusion: The objection based on the earlier proceeding failed.

Issue (ii): Whether a dealer who defaulted in payment of tax under the Central Sales Tax Act, 1956 became liable to penalty under section 13(2) of the Mysore Sales Tax Act, 1957 by virtue of section 9(3) of the Central Sales Tax Act, 1956.

Analysis: Section 9(3) authorised the State tax machinery to assess, collect and enforce payment of Central sales tax in the same manner as tax under the State law, and the State provisions applied accordingly. The penalty under section 13(2) was treated as incidental to the manner of payment and collection, not as a disconnected punishment. Once default occurred in payment within the prescribed time, the statutory liability to penalty arose, irrespective of contumacious conduct.

Conclusion: The defaulting dealer was liable to penalty under section 13(2) of the Mysore Sales Tax Act, 1957.

Final Conclusion: The revision petition was rejected and the order directing recovery, including the statutory penalty, was sustained.

Ratio Decidendi: Where a Central sales tax is collected through the State sales tax machinery under section 9(3) of the Central Sales Tax Act, 1956, the State law provisions governing the manner of payment and the statutory consequences of default, including penalty, apply as part of the integrated collection process.

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