Recovery from partner's salary for firm tax arrears is not permitted when money is not due to the dealer firm.

Section 25 of the Kerala General Sales Tax Act, 1963 authorises recovery only from a person who owes money to the dealer or holds money for the dealer. A firm is the dealer under section 2(viii), not its individual partner. Although section 21A makes partners jointly and severally liable for tax dues of a dissolved or discontinued firm, that liability does not enlarge section 25 to cover attachment of money due personally to a partner. Accordingly, salary payable to a partner cannot be proceeded against under section 25 for the firm's tax arrears.

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Issues: Whether, under section 25 of the Kerala General Sales Tax Act, 1963, the assessing authority could recover arrears of tax due from a firm by issuing notice against money due to a partner of the firm.

Analysis: Section 25 permits recovery only from any person from whom money is due or may become due to the dealer, or who holds money for or on account of the dealer. The definition of "dealer" under section 2(viii) treats the firm as the dealer, not the individual partner. Though section 21A makes partners jointly and severally liable for tax dues of a dissolved or discontinued firm, that provision does not expand the scope of section 25 so as to permit attachment of monies due to a partner as distinct from monies due to the dealer firm.

Conclusion: No notice under section 25 could be issued against salary due to the partner, since the partner was not the dealer and the money was not due to the dealer firm.

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