Post-dissolution tax assessment fails where the sales tax law lacks any provision to assess a non-existent firm.

A dissolved firm that has discontinued business cannot be assessed to sales tax under the U.P. Sales Tax Act, 1948 unless the statute expressly provides for post-dissolution assessment. The Act treats a firm as a separate dealer for assessment, but it contains no provision allowing assessment or recovery proceedings against a non-existent unit after dissolution and cessation of business. By contrast with the Income-tax Act, where special provisions are needed to address discontinuance or disruption, the absence of such authority here meant the assessment orders and recovery certificate could not stand.

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Issues: Whether a dissolved firm that had discontinued business could still be assessed to sales tax under the U.P. Sales Tax Act, 1948, and whether recovery proceedings and the certificate issued under section 8 could stand.

Analysis: Sales tax under section 3 is payable by a dealer, and a firm is treated as a separate unit of assessment within the statutory definition of dealer. However, the Act contained no provision enabling assessment of a firm after dissolution and discontinuance of business. The position was compared with the scheme under the Income-tax Act, where special provision was required to deal with cases of disruption or cessation, and in its absence proceedings could not continue against a non-existent unit.

Conclusion: The dissolved firm could not be assessed after it had ceased to exist, and the assessment orders and recovery certificate were liable to be quashed in favour of the assessee.

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