Employee liability for account-book defaults under sales tax law rejected where the statutory duty rests on the dealer.

The Karnataka Sales Tax Act, 1957 was construed as placing the duty to maintain and produce account books on the dealer, or a person liable to be registered as a dealer, rather than on an employee. The penal provision was read in light of that substantive obligation, and the Act was held not to create an independent criminal liability for an employee's failure to keep or produce accounts. On that construction, the employee could not be prosecuted for the alleged default, and the criminal proceedings were quashed.

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Issues: Whether an employee of a dealer can be prosecuted for failure to maintain or produce account books under the Karnataka Sales Tax Act, 1957, and whether the criminal proceedings were liable to be quashed.

Analysis: The provisions dealing with maintenance and production of accounts place the obligation on the dealer or a person liable to be registered as a dealer. The penal provision was construed in the context of those substantive duties, and the Act was held not to create any independent legal obligation fastening liability on an employee for such defaults. On that construction, a failure by the employee did not attract penal consequence, since the statutory responsibility remained with the dealer.

Conclusion: The employee was not liable for prosecution for the alleged breach, and the proceedings were quashed.

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