Garnishee recovery under sales tax law is limited to money due to the dealer, not a partner of the firm.

Section 14(1) of the Mysore Sales Tax Act, 1957 operates as a garnishee provision and authorises recovery only from a person who owes money to, or holds money for, the dealer. A firm is the dealer under the Act, and a partner does not become the dealer merely because the firm has been assessed. Although section 13(3) was amended to permit recovery from the dealer or any other person, no corresponding amendment was made to section 14(1), and rule 43 applies only in cases of dissolution. The provision therefore does not extend to money due to a partner of the assessee-firm, and a notice targeting the petitioner's debtor was without jurisdiction and illegal.

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Issues: Whether section 14(1) of the Mysore Sales Tax Act, 1957 authorises recovery of tax arrears from a debtor of a partner of an assessee-firm, instead of a debtor of the dealer.

Analysis: Section 14(1) operates in the nature of garnishee proceedings and enables the assessing authority to require a person from whom money is due or may become due to the dealer, or who holds money for or on account of the dealer, to pay the tax arrears. A firm is the dealer for the purposes of the Act, and a partner of the firm does not become the dealer merely because the firm has been assessed. Although section 13(3) was amended to permit recovery from the dealer or any other person, and rule 43 provides for liability of partners in the case of dissolution of the firm, no corresponding amendment was made to section 14(1). The language of section 14(1) therefore confines the recovery mechanism to money due to the dealer and not to money due to a partner of the assessee-firm.

Conclusion: The notice seeking recovery from the petitioner's debtor was without jurisdiction and illegal.

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