Reassessment of deceased dealer valid through one legal representative; penalty liability extends to the estate under statutory fiction.

Notice for reassessment of a deceased dealer was valid where it was issued to the widow who continued the business, as one legal representative could effectively represent the estate absent any special ground to the contrary. Limitation ran from the section 16 notice, not from the later reassessment order passed after remand, so the challenge on time-bar failed. The statutory fiction under section 15 treating legal representatives as dealers also extended to assessment and penalty, while liability remained confined to the deceased's estate. Penalty on the legal representatives was therefore upheld, with no personal liability beyond the estate.

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Issues: (i) whether reassessment under section 16 was invalid or time-barred because the original notice was issued only to the widow and not to all legal representatives; (ii) whether penalty could be levied on the legal representatives under section 15 and section 16.

Issue (i): whether reassessment under section 16 was invalid or time-barred because the original notice was issued only to the widow and not to all legal representatives.

Analysis: The Court held that the principle that the estate of a deceased person can be effectively represented by one legal representative, unless there is a special ground showing otherwise, applies with equal force to sales tax proceedings. Since the widow continued the business and there was no material to show that the assessing authority knew of any other person having a right in the business at the time of issue of notice, the reassessment proceedings were validly initiated. The period of limitation was to be reckoned from the notice under section 16 and not from the later revised reassessment order passed after remand.

Conclusion: The challenge on limitation and invalid initiation of reassessment failed and was decided against the assessee.

Issue (ii): whether penalty could be levied on the legal representatives under section 15 and section 16.

Analysis: Section 15 deems the legal representative of a deceased dealer to be a dealer for the purposes of the Act, and the liability remains confined to the assets of the deceased in the hands of the legal representatives. On that basis, the Court held that the statutory fiction extends to assessment as well as to penalty, while not creating any personal liability beyond the estate. Section 45 dealing with offences and prosecution did not limit the operation of section 15 in relation to assessment or penalty.

Conclusion: The levy of penalty on the legal representatives was upheld and was decided against the assessee.

Final Conclusion: The revision was rejected because the reassessment was validly initiated within time and the legal representatives were liable to assessment and penalty to the extent of the deceased's estate.

Ratio Decidendi: In proceedings for reassessment of a deceased dealer, notice to one legal representative who is in charge of the business can validly represent the estate and commence proceedings, and the statutory fiction treating legal representatives as dealers extends to penalty liability within the limits of the estate.

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