1996 (12) TMI 367 - AT - VAT and Sales Tax

Summary

Issues:
1. Necessity of making partners parties in a dissolved firm for an application under section 14(1) of the RST Act.
2. Impact of non-mention of partners' names on the case when the firm existed during assessment and appeal.
3. Correctness of disallowing amendment of application under section 14(1) of the RST Act by adding partners' names.
4. Sufficiency of counsel appearance for a dissolved firm as notice to partners for hearing and revision disposal.

Detailed Analysis:

1. The Tribunal was directed by the Rajasthan High Court to answer four questions related to a dissolved firm's assessment under the RST Act. The questions revolved around the necessity of making partners parties in a dissolved firm, impact of non-mentioning partners' names during assessment and appeal, correctness of disallowing amendment to add partners' names, and sufficiency of counsel appearance for notice to partners.

2. The case involved a firm engaged in manufacturing and importing copper wire and rods. The assessment order imposed tax on sales, which was later appealed and allowed by the Deputy Commissioner. However, a revision petition was filed by the assessing authority after the firm was dissolved. The Revenue Board dismissed the revision, leading to a reference to the Rajasthan High Court, which directed the questions to the Tribunal.

3. The department contended that the Revenue Board erred in dismissing the revision petition, arguing that the appearance of counsel for the dissolved firm should be deemed as representing the ex-partners. The High Court allowed adding ex-partners' names, suggesting that the amendment should have been allowed by the Revenue Board.

4. The dealer-respondent supported the Revenue Board's decision in allowing the preliminary objection raised regarding the dissolved firm. The Tribunal analyzed the legal provisions and found that non-impleadment of a dealer was not fatal, as the law required hearing the dealer before passing an order under section 14 of the Act.

5. Given the minor disputed tax amount and the legal provisions at the time, the Tribunal answered the questions in the negative for the first, second, and fourth queries, and in the affirmative for the third question. The reference was answered accordingly, concluding the judgment on the matter related to the dissolved firm's assessment under the RST Act.