Recovery by arrest cannot proceed against a non-partner for a firm's sales tax arrears, the High Court held.

Recovery by arrest for sales tax arrears cannot be used against a person who was not a partner of the defaulter firm during the relevant tax period and was not shown to be legally liable for the demand. The liability on record belonged to the dissolved partnership firm, and mere family connection or an alleged signature on a return did not establish partnership status or recovery liability. On that basis, arrest of the petitioner was held illegal and the arrest order was quashed.

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Issues: Whether the petitioner, not being a partner of the defaulter firm during the period to which the sales tax demand related, could validly be arrested and detained in recovery proceedings for the firm's arrears.

Analysis: The demand related wholly to the period when the business was carried on by the partnership firm before its dissolution. The liability admitted on record was that of the firm, and there was no statutory basis shown for arresting a person who was not a partner of the assessee-firm merely because he was related to one of the former partners or was said to be a member of a later family arrangement. The reasoning also reflected that recovery by arrest under the relevant revenue recovery provision was not available against a person who was not himself the defaulter in the manner contemplated by law. The petitioner's alleged signing of a return did not establish that he had been a partner or otherwise liable in the recovery proceedings.

Conclusion: The petitioner could not be arrested for recovery of the firm's sales tax arrears, and the order directing his arrest was illegal and quashed.

Final Conclusion: The writ petition succeeded, the arrest order was set aside, and the respondent was restrained from proceeding against the petitioner by arrest for the firm's tax arrears.

Ratio Decidendi: Recovery by arrest cannot be enforced against a person who is not legally liable for the tax demand and is not the defaulter within the scope of the governing recovery law.

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