Transferee liability for sales tax rejected where the statute imposed recovery only on the dealer and no charge attached to the property.

Sales tax liability under the Act was fastened on the dealer, and the assessment and recovery machinery operated only against that dealer. Although the Act specifically permitted recovery from the assets of a deceased assessee, it contained no provision authorising recovery from a transferee of the dealer's property, and no charge was created on the transferred machinery and building. So long as the sale deed remained valid and unset aside, the transferor's unpaid sales tax could not be enforced against the purchasers. Recovery from the transferees was therefore impermissible, and mandamus would lie to restrain such recovery.

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Issues: Whether sales tax assessed on the transferor could be recovered from the transferees of the mill property.

Analysis: The liability to pay sales tax under the Act was imposed on the dealer, who was defined as a person carrying on the business of buying or selling goods. The charging provision fastened the tax on the dealer, and the return, assessment, and recovery machinery likewise proceeded against the dealer. The Act contained a specific provision for recovery from the assets of a deceased assessee, but no provision authorised recovery from a transferee of the dealer's property. The machinery and building purchased by the petitioners could not be treated as the dealer, and no charge on the property was created by the Act. So long as the sale deed stood and had not been set aside, the earlier sales tax liability of the transferor could not be enforced against the transferees.

Conclusion: Recovery of the transferor's sales tax from the petitioners was not permissible, and mandamus was warranted to restrain such recovery.

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