Remission under sales tax law is confined to the defaulter; an auction purchaser cannot seek waiver of interest or penalty.

The remission power under section 13(2-A) of the Karnataka Sales Tax Act, 1957 is confined to the assessee in default or another person legally liable for the statutory levy. An auction purchaser of a defaulter's property, even if the property is subject to the State's prior charge and the purchaser holds sale proceeds, is not within that class. The Court reasoned that the interest or penalty under section 13(2)(ii) remains the defaulter's liability, and extending section 13(2-A) to an auction purchaser would enlarge the provision beyond its terms. The petitioner-bank therefore had no locus to seek waiver or reduction of the levy.

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Issues: Whether an auction purchaser of property belonging to a sales tax defaulter, who also held sale proceeds subject to the State's prior charge, could maintain an application under section 13(2-A) of the Karnataka Sales Tax Act, 1957, seeking waiver or reduction of interest or penalty levied under section 13(2)(ii) of the Act.

Analysis: The provision for waiver or reduction under section 13(2-A) was held to be a concession intended for the assessee in default or a class of persons liable for the statutory levy. The liability under section 13(2)(ii) arose from the assessee's default, and the auction purchaser merely entered the scene by reason of the mortgage and purchase of the charged property. Expanding section 13(2-A) to include an auction purchaser would unduly enlarge the provision and permit persons other than the defaulter to seek remission of a levy that remained essentially the defaulter's liability. The Court also held that the petitioner's possession of sale proceeds did not alter this position.

Conclusion: The petitioner-bank had no locus to invoke section 13(2-A) and could not seek waiver or reduction of the levy.

Ratio Decidendi: The remission power under section 13(2-A) of the Karnataka Sales Tax Act, 1957 is confined to the assessee in default or persons legally liable for the statutory levy and cannot be invoked by an auction purchaser of the defaulter's property.

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