Retiring partner liability depends on statutory intimation; without prescribed notice, retirement cannot defeat sales tax dues.

A retiring partner remains jointly and severally liable for sales tax and other dues under the Kerala General Sales Tax Act, 1963 unless the prescribed retirement intimation is given. Where the firm is not dissolved, Rule 5(8)(b) requires the partner to file Form 3 with the registering authority within 30 days of retirement, along with the retirement deed. The court treated compliance with that statutory mode as necessary for the revenue to recognize retirement, and held that reference to other documents was insufficient. On the record, no such intimation had been given, so the retirement claim could not displace liability and the revisions failed.

---

---

Issues: Whether a partner who claimed retirement from a partnership was relieved of sales tax liability without giving the prescribed intimation under the Kerala General Sales Tax Rules, 1963, and whether the revision applications could succeed on the basis of other documentary material.

Analysis: Section 21 of the Kerala General Sales Tax Act, 1963 makes partners jointly and severally liable, and a retiring partner remains liable for tax and other amounts unpaid at the time of retirement as well as amounts due up to the date of retirement. Rule 5(8)(b) of the Kerala General Sales Tax Rules, 1963 requires a retiring partner, where the firm is not dissolved, to send a declaration in Form 3 to the registering authority within 30 days of retirement together with a copy of the deed of retirement. The court held that revenue can be expected to recognize retirement only through compliance with that prescribed mode, and that mere reference to other documents could not amount to compliance. The finding that no such intimation had been given was a finding of fact based on the record.

Conclusion: The claim of retirement could not defeat liability, because the statutory intimation requirement was not complied with; the revisions failed.

---