Recovery powers under sales tax law cannot compel transfer of shares absent express statutory authority.

Section 17 of the Andhra Pradesh General Sales Tax Act, 1957 authorised recovery only from money due to, or held for, the dealer, not from shares or share certificates. A notice requiring transfer of shares and issue of duplicate share certificates exceeded the statutory recovery power because it did not identify any money held by the petitioner for the dealer. The departmental action was therefore beyond the scope of section 17 and the impugned notice was liable to be quashed.

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Issues: Whether section 17 of the Andhra Pradesh General Sales Tax Act, 1957 authorised the assessing authority to require transfer of shares or issue of duplicate share certificates for recovery of tax arrears from alleged defaulters.

Analysis: Section 17(1) permits recovery only from a person from whom money is due or may become due to the dealer, or who holds money for or on account of the dealer. The notice in question did not quantify any amount held by the petitioner and instead directed transfer of shares and issue of duplicate share certificates. The Court held that the statutory provision did not confer power to compel transfer of shares, and the departmental action was therefore beyond the scope of the recovery provision.

Conclusion: The impugned notice was without authority under section 17 of the Andhra Pradesh General Sales Tax Act, 1957 and was liable to be quashed in favour of the petitioner.

Ratio Decidendi: A recovery provision limited to money due or held for a dealer cannot be stretched to authorise compulsory transfer of shares in the absence of a statutory power to attach such shares.

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