Successor dealer liability under the charging provision extends to additional tax when turnover crosses the statutory threshold.

A transferee succeeding to a registered dealer's business under section 19(6) of the Bombay Sales Tax Act, 1959 remains a dealer liable under the charging provision in section 3, because the succession rule operates within the same tax scheme and fastens the incidence of tax on the successor. As a result, the successor is also subject to additional tax under section 15A-I when the turnover exceeds the prescribed threshold, since that provision applies to dealers liable under section 3.

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Issues: Whether a transferee who succeeds to the business of a registered dealer under section 19(6) of the Bombay Sales Tax Act, 1959 is a dealer liable to pay tax under section 3 of the Act and, consequently, liable to additional tax under section 15A-I when the turnover exceeds the prescribed limit.

Analysis: Section 3 is the charging provision of the Act, while section 19 contains special provisions dealing with liability in cases of succession, transfer, dissolution and similar contingencies. The liability of a successor does not arise independently of section 3 merely because section 19(6) requires the successor to apply for registration and pay tax on sales or purchases after succession. Section 19 operates as part of the scheme of section 3 and fastens the incidence of tax on the successor as well. Section 15A-I applies to every dealer liable to pay tax under section 3 whose turnover exceeds the specified threshold. The reference in section 15A-I to dealers liable under section 3 does not exclude a successor covered by section 19(6), because the successor remains a dealer liable under the charging provision itself.

Conclusion: The transferee was liable to pay tax under section 3 of the Bombay Sales Tax Act, 1959 and was therefore liable to additional tax under section 15A-I. The question was answered in favour of the Revenue and against the assessee.

Ratio Decidendi: A successor to a dealer's business who is made liable by a special succession provision is still a dealer liable under the charging section, and the liability extends to additional tax provisions that apply to dealers liable under that charging section.

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