1980 (3) TMI 242 - HC - VAT and Sales Tax

Summary

Issues:
1. Liability of legal representative for deceased's tax liabilities under Kerala General Sales Tax Act.
2. Validity of notices of demand issued to legal representative.
3. Applicability of Full Bench decision of Mysore High Court in a similar case.
4. Interpretation of Section 20 of the Kerala General Sales Tax Act regarding legal representatives' liability.
5. Deemed liability and knowledge of legal representative under the Act.

Analysis:
The petitioner's son, a dealer under the Kerala General Sales Tax Act, passed away, making the father his legal representative and deemed dealer under Section 20 of the Act. The father was treated as a defaulter for the deceased son's tax liabilities, leading to a demand for Rs. 3,186.56. The petitioner challenged the notices of demand and final assessment for the year 1973-74, arguing that the deceased's tax liability couldn't be imposed on him. The petitioner sought a writ of prohibition and mandamus to stop proceedings and refund the amount paid.

The petitioner contended that as the legal representative, he wasn't liable for his son's tax obligations until a notice of demand was served on him. The counsel cited a Full Bench decision of the Mysore High Court to support this argument. However, the court rejected this argument, emphasizing Section 20 of the Act, which holds legal representatives liable to the extent of the deceased's assets. The court ruled that the legal representative is deemed to be the dealer himself, with knowledge and obligations transferred accordingly.

The court highlighted that the legal representative's liability extends beyond that of a mere representative, as per Section 20 of the Act. Unlike the Mysore decision, the Kerala Act deems the legal representative to be the deceased dealer, allowing for recovery actions as if against the deceased. Notices of demand issued to the deceased were deemed applicable to the legal representative, justifying the recovery proceedings initiated against the petitioner.

Ultimately, the court dismissed the petition, ruling against the petitioner's challenge to the orders and denying the refund claim. The judgment affirmed the legal representative's liability for the deceased's tax liabilities under the Kerala General Sales Tax Act, emphasizing the deemed status and obligations conferred upon legal representatives.