Service on one erstwhile partner can validate assessment of a dissolved firm under Karnataka sales tax rules.

Assessment of a dissolved firm under the Karnataka Sales Tax Act was upheld despite notice being served on only one former partner. Rule 43(2) of the Karnataka Sales Tax Rules permitted service on any person who had been a partner immediately before dissolution, and that rule was sufficient for assessment proceedings. The stricter service requirement applicable to recovery proceedings did not govern the assessment stage. On that basis, the challenge to the assessment failed and the writ petitions were dismissed.

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Issues: Whether the assessment made on a dissolved firm under the Karnataka Sales Tax Act was invalid for want of notice to all erstwhile partners.

Analysis: The question turned on the effect of Rule 43(2) of the Karnataka Sales Tax Rules, which permits notice, summons, or orders to be served on any person who was a partner of the dissolved firm immediately before dissolution. The distinction between assessment proceedings and recovery proceedings was material. In assessment matters, service on one ex-partner was held sufficient, and the stricter rule applied in recovery proceedings did not govern the present case.

Conclusion: The assessment was not invalid merely because notice was not served on all ex-partners, and the challenge to the assessment failed.

Final Conclusion: The writ petitions were dismissed because the assessment against the dissolved firm was held to be legally sustainable despite notice being served on only one former partner.

Ratio Decidendi: Where the governing rules permit service on any erstwhile partner of a dissolved firm, assessment proceedings are valid even if notice is not issued to every ex-partner; the recovery rule applicable to demand enforcement does not control assessment.

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