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<h1>Business Transfer Liability for Sales Tax Dues: Transferor & Transferee's Liability, Distress Warrant Procedure</h1> <h3>Hatim Mahmood Versus A. CTO, Mount Road, Madras</h3> The High Court of Madras held that in a business transfer of ball bearings, both the transferor and transferee are liable for sales tax dues. A distress ... - The High Court of Madras ruled that in a business transfer of ball bearings, both the transferor and transferee are liable for sales tax dues. A distress warrant should be issued to the transferor first, and only if the amount cannot be recovered from them, should the transferee be pursued. The Fifth Presidency Magistrate in Madras will issue the distress warrant accordingly. (Case Citation: 1959 (4) TMI 17 - MADRAS HIGH COURT)