Service on one former partner binds all in dissolved firm assessments, and appeal limitation starts from that date.

Under section 19A of the Tamil Nadu General Sales Tax Act and rule 52(2) of the Rules, a dissolved firm's assessment may be served on any erstwhile partner because the statutory fiction continues the firm's tax liability as if dissolution had not occurred. Service on one former partner is therefore valid service on all erstwhile partners. The same service date also starts limitation for filing appeals, and a later plea of non-service on another partner does not extend time. On that basis, the appeals were held barred by limitation and the assessments and penalties were left undisturbed.

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Issues: (i) Whether, after dissolution of a firm, service of assessment orders on one erstwhile partner under section 19A of the Tamil Nadu General Sales Tax Act, 1959 and rule 52(2) of the Tamil Nadu General Sales Tax Rules, 1959 amounts to valid service on all erstwhile partners. (ii) Whether the period of limitation for filing appeals against the assessment orders runs from the date of such service on any one erstwhile partner.

Issue (i): Whether, after dissolution of a firm, service of assessment orders on one erstwhile partner under section 19A of the Tamil Nadu General Sales Tax Act, 1959 and rule 52(2) of the Tamil Nadu General Sales Tax Rules, 1959 amounts to valid service on all erstwhile partners.

Analysis: Section 19A continues the assessment of tax payable by a dissolved firm as if dissolution had not taken place and makes all erstwhile partners jointly and severally liable. Rule 52(2) expressly permits notices, summons and orders issued under the Act or Rules to be served on any person who was a partner immediately before dissolution. The statutory fiction was treated as extending to the mode of service on the dissolved firm, and the requirement of service on every former partner was rejected.

Conclusion: Yes. Service on one erstwhile partner is valid service on all erstwhile partners.

Issue (ii): Whether the period of limitation for filing appeals against the assessment orders runs from the date of such service on any one erstwhile partner.

Analysis: Since the assessment orders were lawfully served on one former partner, the limitation for appeal began on the date of that service. The court held that the assessee could not claim a later starting point merely because personal service on the petitioner was not effected. The appeals were filed long after the statutory period had expired.

Conclusion: Yes. Limitation runs from service on any one erstwhile partner, and the appeals were barred by limitation.

Final Conclusion: The challenge to the dismissal of the appeals failed, and the assessments and penalties were allowed to stand.

Ratio Decidendi: Where a statute governing dissolved firms authorises service of notices or orders on any former partner and continues the firm's tax liability as if dissolution had not occurred, service on one erstwhile partner is deemed service on all, and limitation for appeal runs from that service.

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