Transferee liability under sales tax law requires prior assessment notice before recovery and quantification can lawfully proceed.

A transferee made jointly and severally liable for a business transfer under section 19(4) of the Bombay Sales Tax Act had to be treated as the dealer for assessment purposes under section 34, not merely for recovery. The statutory notice under section 33(3) was therefore required to be served on the transferee before completion of assessment so the transferee could contest liability and quantification. Assessment and recovery taken without that notice were held illegal, and the recovery notices, attachment and consequential actions were quashed.

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Issues: Whether a transferee of a business, made liable under section 19(4) of the Bombay Sales Tax Act, 1959, was entitled to notice of pending assessment proceedings against the transferor before the tax liability was quantified and recovered.

Analysis: Section 19(4) created joint and several liability on the transferor and transferee for tax due, including tax assessed after transfer. Section 34 directed that all relevant provisions of the Act apply to a person liable under section 19 as if he were the dealer himself. Reading sections 19(4), 33 and 34 together, the transferee who becomes liable on transfer is entitled to be treated as a dealer for assessment purposes, not merely for recovery. The notice contemplated by section 33(3), therefore, had to be served on the transferee before completing assessment, so that the transferee could contest liability and quantification. The Act also contained machinery requiring disclosure of transfer and registration by the transferee, so the department could issue notice accordingly.

Conclusion: The transferee was entitled to notice under section 33(3) before completion of assessment, and the assessment and recovery proceedings taken without such notice were illegal.

Final Conclusion: The impugned recovery notices, attachment, and consequential actions were quashed, and the writ was made absolute.

Ratio Decidendi: A transferee made liable under section 19(4) must be treated as the dealer for assessment purposes under section 34, and pending assessment proceedings cannot bind him unless the statutory notice and opportunity contemplated by section 33(3) are afforded.

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