TaxTMI 
TaxTMI 
1988 (4) TMI 400
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.... P.A. CHOUDARY, J.-One Sana Jagannadha Rao, son of Samba Murthy and his wife Sana Varalaxmi and his nephew Voona Manmadha Rao constituted a firm called Ganesh Cocoanut Company at Vizianagaram. It was registered under section 12 of the Andhra Pradesh General Sales Tax Act on 1st January, 1983. On 16th March, 1983 a notice was issued under section 12(e) of the above Act calling upon the above men....
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....he above deposit of Rs. 1,00,000 to ensure proper and timely payment of taxes. On receipt of the above notice, a reply had been sent on behalf of the Ganesh Cocoanut Company on 21st March, 1983. In that reply, the second partner, the wife of the first partner and the third partner, his nephew denied knowledge of the fact that Uma Sankar Cocoanut Company of which the present first partner was the m....
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....furnishing security are true and correct. In fact, it cannot be denied that Sri Sana Jagannadha Rao, who was the Managing Partner of Ganesh Cocoanut Company at the time when the present notice was issued was also the Managing Partner of M/s. Uma Sankar Cocoanut Company which defaulted in paying sales tax to the tune of Rs. 80,876.00. Uma Sankar Cocoanut Company was a partnership firm consisting of....
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.... and on the aforesaid facts, we are of the opinion that the authorities are more than justified in demanding the security from the present partnership firm which is no less and no more than an alter ego of the said Jagannadha Rao. It is the purpose of section 12 to protect the legitimate sales tax revenue from such less than honest traders. The argument that the petitioner-firm had not been giv....