Recovery of sales tax arrears cannot reach other partners' independent interests beyond the defaulting partner's share.

Recovery of sales tax arrears under the Tamil Nadu General Sales Tax Act, 1959 is confined to money due to the assessee or held for the assessee, and cannot be extended to the independent interests of other partners in separate partnership firms. Where one partnership concern defaults, the bank recovery mechanism may reach only the defaulting partner's share in the firms, not the shares belonging to non-defaulting partners who are not shown to be liable for the arrears. The statutory power therefore cannot be used to direct remittance beyond the defaulter's interest, and recovery action to that extent is unsustainable.

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Issues: Whether sales tax arrears due from one partnership concern could be recovered by directing the bank to remit amounts standing in the accounts of other partnership firms beyond the partner-defaulter's interest, under sections 25 and 26 of the Tamil Nadu General Sales Tax Act, 1959.

Analysis: The statutory scheme permits recovery of arrears from a person from whom money is due to the assessee or who holds money for the assessee. That power, however, cannot be extended so as to reach the interests of other partners who are not shown to be liable for the arrears of the defaulting concern. The recovery mechanism under the Act was therefore confined to the extent of the defaulting partner's share in the partnership firms and could not be used to affect the independent interests of the other partners.

Conclusion: The direction to the bank could not validly extend beyond the interest held by the defaulting partner, and the impugned recovery action was unsustainable to the extent it the interests of the other partners.

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