Firm as taxable person bars personal prosecution of a partner absent notice and proceedings against the firm

A firm was treated as the taxable and defaulting "person" under the sales tax scheme, so assessment and demand had to be made against the firm itself. Although the rule imposed joint and several responsibility on the dealer and partner, it did not override the Act's structure. Where no notice of demand was served on the partner and the firm was not prosecuted as such, personal prosecution of the partner was inconsistent with the statutory scheme. The partner was therefore not liable to be convicted, and the acquittal was upheld.

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Issues: Whether a partner of a firm, on whom no notice of demand was served, could be prosecuted personally for failure to pay sales tax assessed on the firm.

Analysis: A combined reading of the relevant provisions treated a firm as a "person" for assessment and default purposes, so that the assessment and demand were made against the firm as an entity. Rule 19, which imposed joint and several responsibility on the dealer and partner, did not override the Act. Since the assessment was on the firm and the notice was issued to the firm, the defaulting entity was the firm itself. The prosecution of an individual partner in his personal capacity, without notice to him and without prosecuting the firm as such, was therefore not in accordance with the statutory scheme.

Conclusion: The partner was not liable to be convicted in these proceedings, and the acquittal was /confirmed in favour of the accused.

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