TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the unpaid tax attributable to commission sales could be recovered straightaway from the principal under section 22 of the Gujarat Sales Tax Act, 1969, without first determining or assessing the principal's liability in proceedings under section 43.
Analysis: Section 22 created joint and several liability between the principal and the commission agent for tax on commission sales, but it did not itself provide the machinery for assessment or reassessment of the tax liability. Where the commission agent had not paid the tax declared in the certificate, the department could not bypass the statutory assessment framework and recover the amount directly by issuing a demand notice. Since reassessment proceedings had not culminated in any valid determination of the principal's liability, the attempted recovery was held to be procedurally unsupported.
Conclusion: The recovery could not be made straightaway from the principal without first following the assessment or reassessment procedure under the Act, and the action of the Sales Tax Officer was without authority of law.
Final Conclusion: The question referred was answered in favour of the assessee, and against the department.
Ratio Decidendi: A provision imposing joint and several liability to pay tax does not dispense with the statutory requirement of assessment or reassessment where the Act provides a separate machinery for determining enforceable liability.
TaxTMI 
