Post-dissolution sales tax assessment fails where the statute lacks express machinery to assess a dissolved firm.

A dissolved firm could not be assessed to sales tax under the East Punjab General Sales Tax Act, 1948, for turnover earned before dissolution because the Act contained no express machinery authorising post-dissolution assessment. The firm was treated as a separate assessable unit, but once dissolved it ceased to exist for tax purposes and the court would not imply a power to assess it. Section 16 was only administrative, rule 40 created liability to pay tax but not a power of assessment, and the Partnership Act did not revive the firm for that purpose. The assessment was therefore invalid and the Revenue failed.

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Issues: Whether a dissolved firm could be assessed to sales tax under the East Punjab General Sales Tax Act, 1948, in respect of turnover earned before dissolution.

Analysis: The Act treated a firm as an independent assessable unit, but it contained no express provision authorising assessment of a firm after dissolution. On dissolution, the firm ceased to exist as a legal entity for tax purposes, and the court could not supply the deficiency by implication. Section 16, dealing with intimation of discontinuance, was only administrative in character and did not preserve the firm's existence for assessment. Rule 40 imposed joint and several liability for tax due, but did not create power to assess a dissolved firm. The provisions of the Partnership Act were also inapplicable to revive the firm for assessment under the sales tax law. The absence of an express machinery provision, unlike the Income-tax Act, was ative.

Conclusion: The dissolved firm could not be validly assessed to sales tax under the Act; the answer was against the Revenue and in favour of the assessee.

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