Prosecution for non-payment of central sales tax failed where no statute created the offence or authorised punishment.

A prosecution for non-payment of tax assessed under the Central Sales Tax Act, 1956 could not be sustained under section 29(1)(d) of the Mysore Sales Tax Act, 1957, because that provision applies only to tax assessed under the State Act and unpaid within the time allowed. Section 9(2) of the Central Sales Tax Act authorises State authorities to assess and recover central sales tax as if it were State tax, but it does not itself create a penal mechanism for default. As section 10 of the Central Sales Tax Act does not include such default among punishable offences, the prosecution had no legal foundation and the acquittals were upheld.

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Issues: Whether a prosecution under section 29(1)(d) of the Mysore Sales Tax Act, 1957 could be sustained for default in payment of tax assessed under the Central Sales Tax Act, 1956.

Analysis: Section 29(1)(d) of the Mysore Sales Tax Act, 1957 applies only where tax assessed under that Act is not paid within the time allowed. Section 9(2) of the Central Sales Tax Act, 1956 authorises State authorities to assess, collect and enforce payment of central sales tax as if it were payable under the State law, but it does not create a prosecution mechanism for default in payment. Section 10 of the Central Sales Tax Act, 1956 specifies the offences punishable under that Act, and default in payment of tax is not included among them. The prosecution therefore lacked legal foundation.

Conclusion: The prosecution for non-payment of tax levied under the Central Sales Tax Act, 1956 was incompetent and the acquittals were upheld.

Ratio Decidendi: A penal prosecution cannot be sustained unless the statute expressly or by necessary implication creates the offence and authorises such prosecution.

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