TaxTMI 
TaxTMI 
1984 (9) TMI 270
X X X X Extracts X X X X
X X X X Extracts X X X X
....uisite surety bond on 14th July, 1966. A copy of that bond has been filed by the respondents as annexure R-1. Thereafter, on the issuance of the registration certificate the partnership firm carried on the business as a dealer. The partnership firm which was "at will" was dissolved on 6th June, 1968, vide deed of dissolution. Another partnership was formed vide partnership deed executed on 8th June, 1968. A copy of that deed is annexure E to the writ petition. Two of the partners of the original firm agreed to admit Kesar Singh as a partner in the business of radios and transistors manufacture which business was being carried on by the earlier partnership firm in the same name and style of M/s. Ruby Electronics Corporation. The business pre....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y the partnership firm, M/s. Ruby Electronics Corporation, cannot be asked to pay more than the extent of his liability under the surety bond. Mr. Chawla, learned counsel for the respondents, has fairly conceded that the petitioner is liable under the bond up to the extent of Rs. 5,000 only. He has drawn my attention to the averments in paragraph 27 of the counter-affidavit wherein this fact has been admitted by the respondents. The relevant portion of that paragraph reads: "The petitioner being the surety of the dealer, is liable to pay dues outstanding against the firm up to Rs. 5,000 in terms of the surety bond." The submission of Mr. Joshi, learned counsel for the petitioner, was that on formation of the subsequent partnership firm v....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lege that any information as required under section 16 of the Act was furnished by the dealer to the sales tax authorities regarding selling or otherwise disposing of the business or any other change in the ownership of the business. The information required to be furnished is: "16. Information to be furnished regarding changes of business.-If any dealer to whom the provisions of sub-section (2) of section 10 apply,- (a) sells or otherwise disposes of his business or any part of his business or any place of business, or effects or comes to know of any other change in the ownership of the business, (b) discontinues his business or changes his place of business or opens a new place of business, or (c) changes the name or nature of his bus....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ith Mr. Chawla that the surety bond in question is an independent agreement executed by the petitioner whereby he undertook to pay up to Rs. 5,000 for the payment of sales tax for which M/s. Ruby Electronics Corporation was liable till the dissolution of the partnership firm. Mr. Joshi's next contention is that the sales tax authorities were duly informed of the dissolution of the old partnership on 6th June, 1968, and formation of the new partnership on 8th June, 1968. The authorities having not objected to the transfer of the business but in fact allowing the new partnership to continue to carry on the business under the then existing registration certificate, it would be deemed that the provisions of sections 16 and 17 have been complied....