1965 (7) TMI 41

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....kaltara. 2.. The facts giving arise to this petition, shortly stated, are these: One Bisahoolal and certain other persons carried on business at Akaltara under the name and style of Bisahoolal Bajranglal. They had applied for registration in the year 1947 and obtained a registration certificate bearing No. Jagr/94 dated 6th September, 1947. This concern discontinued its business with effect from 15th April, 1952, and its registration certificate was, by an order of the Assistant Commissioner of Sales Tax, Bilaspur, dated 31st March, 1962, cancelled from that date. Even so, on 21st October, 1961, it was assessed to a tax of Rs. 20,551.69 on the sales it had made in the year 1949-50 and, on 31st October, 1961, it was similarly assessed to ....

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....ofits in the business of that firm. The petitioner has moved this Court for relief mainly on the ground that he had nothing whatsoever to do with the concern Bisahoolal Bajranglal, that he was in no way liable for the arrears of tax due from that concern and that recovery proceedings initiated against him were wholly without jurisdiction. 3.. This petition has been resisted mainly on the ground that, on the facts and in the circumstances of the case, proceedings taken for recovery of the arrears of tax against the petitioner were fully justified under the provisions of section 33(4) of the Madhya Pradesh General Sales Tax Act, 1958. According to the respondents, the business carried on in the name of Bisahoolal Bajranglal was owned by a ....

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....he tax payable by a partner or a member as aforesaid cannot be recovered from him, it may be recovered from the firm or association as reconstituted, or from the transferee: Provided further that where a tax is recovered from the firm or association or transferee as aforesaid, such firm or association or transferee shall be entitled to recover the same from the partner or member who was originally liable to pay the tax. Explanation.-The dissolution or reconstitution of a firm or association of persons or partition of a joint Hindu family shall be deemed to be discontinuance of business within the meaning of this subsection." In view of this provision, there is no doubt that the taxing authorities could recover the arrears from the pet....

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....owning that concern, that the money charged for payment of the arrears really belonged to that family and that, when the petitioner separated, he had undertaken to pay the arrears of tax. As already indicated, the petitioner contests each one of these facts. It is obvious, and is not disputed either, that before the revenue recovery certificate was issued in this case, no enquiry was made regarding the liability of the petitioner to pay the arrears and he was not given any opportunity to show that he was not liable. Again, when he raised the question before the Additional Tahsildar, that officer summarily rejected the objection. Further, in the two successive appeals filed by the petitioner against that order, it was concurrently held that ....