Recovery of sales tax arrears cannot be rejected merely because the defaulter owns no property.

On default, sales tax arrears under the Madras General Sales Tax Act become immediately due and operate as a charge on the assessee's properties; the Act also permits recovery either as arrears of land revenue or through an application to a Magistrate, who must proceed according to law. An application for recovery could not be returned merely because the defaulter owned no property, and it was improper to do so without issuing notice to the assessee and taking the steps contemplated by section 24(2)(b).

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Issues: Whether an application for recovery of sales tax arrears under section 24(2)(b) of the Madras General Sales Tax Act, 1959 could be returned solely because the defaulter owned no property.

Analysis: Section 24 deals with recovery of tax and provides that, on default, the amount outstanding becomes immediately due and is a charge on the properties of the assessee. Sub-section (2) further permits recovery of tax due under the Act either as an arrear of land revenue or on application to a Magistrate, who is required to proceed according to law. The return of the application without issuing notice to the assessee and without taking the steps contemplated by section 24(2)(b) was not justified.

Conclusion: The District Magistrate's view was incorrect and the application could not be returned on the ground that the defaulter owned no property.

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