https://www.taxtmi.com/caselaws?id=100502 Rule 21-A under the Madras General Sales Tax Act could not extend the charging scheme to make a business transferee liable for the transferor's sales tax arrears, because the dealer's liability was confined to its own turnover and rule-making power could not enlarge statutory charge or recovery beyond the Act. The later amendment creating express transferee liability was inapplicable to a transfer completed earlier, so the rule was ultra vires. A private undertaking in the transfer instrument also did not create enforceable liability in favour of the State, since a contractual promise between transferor and transferee cannot bind the taxing authority without statutory authority. The transferee was therefore not liable for the arrears. en-us Mon, 17 Apr 1967 00:00:00 +0530 Wed, 16 Nov 2022 15:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100502 Rule 21-A under the Madras General Sales Tax Act could not extend the charging scheme to make a business transferee liable for the transferor's sales tax arrears, because the dealer's liability was confined to its own turnover and rule-making power could not enlarge statutory charge or recovery beyond the Act. The later amendment creating express transferee liability was inapplicable to a transfer completed earlier, so the rule was ultra vires. A private undertaking in the transfer instrument also did not create enforceable liability in favour of the State, since a contractual promise between transferor and transferee cannot bind the taxing authority without statutory authority. The transferee was therefore not liable for the arrears. Case-Laws VAT and Sales Tax Mon, 17 Apr 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100502