TDS default remains prosecutable despite later payment, and pending representation does not bar sanction for prosecution.

Failure to remit tax deducted at source within the prescribed time remains a prosecutable default, and later payment with interest does not erase the breach. A pending representation seeking deferment of action did not prevent the authorities from granting sanction for prosecution, and the Court found no violation of natural justice on that basis. Because the liability had not been fully discharged, the challenge to the criminal proceedings was rejected, and the prosecution was allowed to continue, with liberty to seek exemption from personal appearance before the Magistrate under procedural law.

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Issues: Whether criminal proceedings initiated for failure to remit tax deducted at source in time were liable to be quashed on the ground that sanction for prosecution was granted while the petitioners' representation was pending and that such action violated principles of natural justice.

Analysis: The petitioners had admittedly deducted tax at source but had not remitted it within the prescribed time. The Court held that a mere representation seeking deferment of action could not prevent the authorities from proceeding in accordance with law. Relying on the settled legal position that delayed payment of tax does not efface the default and that prosecution under the Act is not rendered invalid merely because the tax was later paid with interest, the Court found no violation of natural justice in the grant of sanction and the consequent prosecution. The Court also noted that the pending liability had not been fully discharged.

Conclusion: The request to quash the criminal proceedings was rejected.

Final Conclusion: The prosecution for TDS default was sustained, and the petitioners were left to face the trial, with liberty to seek exemption from personal appearance before the Magistrate under the procedural law.

Ratio Decidendi: Failure to remit TDS within the prescribed time constitutes a prosecutable default, and subsequent payment with interest or pendency of a representation does not bar sanction for prosecution or justify quashing of the proceedings.

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