Retrospective validation of dissolved-firm assessments upheld, leaving ex-partner liable without a fresh assessment.

Retrospective validation under Central Act 28 of 1969 cured the defect that had led to quashing of earlier CST assessments against a dissolved firm, because the amended law treated the firm as assessable as if no dissolution had occurred. The substituted section 15(2) of the Karnataka Sales Tax Act, 1957, with retrospective effect from the commencement of the principal Act, also fastened joint and several liability on the partners. On that basis, the revived assessments remained enforceable against the ex-partner, and no fresh assessment was required before recovery.

---

---

Issues: Whether the assessments made under the Central Sales Tax Act against a dissolved firm could be enforced against an ex-partner after retrospective validation by the validating amendment and the retrospective substitution of section 15 of the Karnataka Sales Tax Act, and whether a fresh assessment was necessary before recovery.

Analysis: The assessments had earlier been quashed only because the then existing State law did not expressly provide for assessment of a dissolved firm. The validating amendment in Central Act 28 of 1969 removed the defect in the earlier assessments, and the substituted section 15(2) of the Karnataka Sales Tax Act, 1957, given retrospective effect from the commencement of the principal Act, treated a dissolved firm as assessable as if no dissolution had taken place and fastened joint and several liability on the partners. The amended procedural provision was held applicable to the assessments already made, and the earlier quashing order ceased to have effect once the legal basis of the challenge disappeared. On that footing, the ex-partner remained liable for the tax determined under the revived assessments, and no fresh assessment was required for recovery.

Conclusion: The challenge failed. The retrospective validation and amendment made the original assessments enforceable against the petitioner without a fresh assessment.

---