Prior determination of liability is required before sales tax recovery can proceed against an alleged third-party debtor.

Recovery of sales tax arrears against a person allegedly liable for another assessee's dues requires prior adjudication by the competent authority. Liability must be determined by a valid assessment or fastening order after notice and consideration of objections; without that, recovery proceedings are without jurisdiction. The statutory recovery scheme does not permit coercive collection first and later resort to civil proceedings, and the provisions on special recovery, joint family business, and transferee liability likewise presuppose prior determination and hearing. Where no order had been made against the persons proceeded against, the demand and recovery could not be sustained.

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Issues: Whether recovery proceedings for sales tax arrears could be initiated against persons without first determining their liability by a valid assessment order and without giving them notice and an opportunity of hearing.

Analysis: The recovery machinery under the sales tax law could be set in motion only after the competent sales tax authority had adjudicated the liability of the persons sought to be proceeded against and had passed an order after considering their objections. Where the petitioners disputed that they were liable for the tax assessed against another firm, and where no order fastening liability on them had been made, the demand and recovery could not be justified merely on the ground that material existed in the officer's hands. The scheme of the relevant sales tax provisions and the bar against suits also indicated that the statutory remedy lay in a proper adjudication before recovery, not in forcing payment first and leaving the parties to a civil suit. The provisions dealing with special recovery and liability in the case of joint family business or transferee liability likewise required prior determination and, where applicable, hearing of objections.

Conclusion: The recovery proceedings were illegal and without jurisdiction, and the writ petition was rightly allowed.

Ratio Decidendi: Tax recovery against a person cannot be commenced unless the competent authority first determines that person's liability in accordance with law after giving notice and hearing objections; recovery without such adjudication is without jurisdiction and liable to be quashed.

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