Sales tax recovery from an alleged partner requires statutory reporting and prior notice before joint liability can arise.

Recovery of sales tax from an alleged partner was held impermissible where the statutory partnership-reporting requirement had not been complied with and no prior notice was served. Rule 34 of the Hyderabad General Sales Tax Rules, 1950 made joint and several liability depend on timely intimation of the partnership to the tax authorities. As neither the dealer nor the petitioner had reported any partnership, and the petitioner was proceeded against only on later information without an opportunity to show cause, the attempted recovery lacked legal foundation and disclosed a patent want of jurisdiction. The writ restraining recovery was therefore justified.

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Issues: Whether sales tax assessed against one dealer could be recovered from an alleged partner without prior notice or compliance with the statutory procedure governing partnership intimation under the sales tax rules.

Analysis: Rule 34 of the Hyderabad General Sales Tax Rules, 1950 required a dealer or licensee who entered into partnership to report that fact within thirty days, and only then could the dealer, licensee, or partner be treated as jointly and severally liable for the tax. The record did not show that either the assessee or the petitioner had reported any partnership to the authorities. The petitioner was not served with notice before the assessment, and when the authorities proceeded against him solely on the basis of later information, they did so without giving him an opportunity to show cause. In these circumstances, the attempted recovery from the petitioner lacked legal foundation and disclosed a patent want of jurisdiction.

Conclusion: The tax could not lawfully be recovered from the petitioner, and the writ restraining recovery was justified.

Final Conclusion: The petition succeeded because the respondents were found to have no authority to enforce recovery against the petitioner in the absence of the statutory precondition and notice.

Ratio Decidendi: Where statutory liability of an alleged partner arises only upon compliance with a prescribed reporting requirement, recovery cannot be enforced against that person without prior notice and adherence to the statutory procedure.

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