Transfer of business deems heir-transferee liable for earlier sales tax where tax was not already paid.

Section 17 of the Bengal Finance (Sales Tax) Act, 1941 deems a transferee to be, and always to have been, the registered dealer, subject to taxes already discharged by the transferor. The expression "transfer of business" is construed broadly and includes devolution on death, whether by will or succession, where the business and assets vest in the new owner. If the heir-transferee continues the business in the old or a new name, assessment and recovery of sales tax may extend to a pre-transfer period, so long as the tax had not already been paid by the previous owner.

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Issues: Whether, on a transfer of business under section 17 of the Bengal Finance (Sales Tax) Act, 1941, a transferee or heir can be assessed to sales tax for a period prior to the transfer, including where the transfer occurs on the death of the registered dealer.

Analysis: Section 17 creates a legal fiction by which the transferee is deemed to be and to have always been the registered dealer for all purposes of the Act, subject to liabilities already discharged by the transferor. The expression "transfer of business" was construed broadly and was not confined to transfers inter vivos. On the statutory scheme, a transfer brought about by death, whether by will or by succession, also results in the business and its assets vesting in the new owner. If the transferee continues the business in the old or a new name, the section permits assessment and recovery of sales tax for an earlier period, provided the tax had not already been paid by the previous owner.

Conclusion: The heir-transferee was liable under section 17 and could be assessed for the pre-transfer period.

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