2006 (1) TMI 564 - HC - VAT and Sales Tax

Summary

Issues:
Petitioner seeking to quash a B6 notice issued by the first respondent for arrears of sales tax related to a defunct partnership firm.

Analysis:
The petitioner, a partnership firm with two partners, raised concerns regarding a B6 notice dated November 14, 2005, issued by the first respondent for arrears of sales tax related to another partnership business named M/s. C.M.R. Knitwear, Tirupur, in which one of the partners is involved. The petitioner argued that both firms are separate legal entities, and there is no provision allowing the recovery of arrears from one partnership to another under the Tamil Nadu General Sales Tax Act.

The learned Government Advocate for the first respondent acknowledged that there is no legal basis to attach the bank account of the petitioner-firm for the liabilities of M/s. C.M.R. Knitwear. After hearing both sides, the court concluded that the petitioner-firm and M/s. C.M.R. Knitwear are distinct entities with no connection in terms of the arrears of sales tax. Consequently, the court held that the B6 notice is unjustifiable and ordered the lifting of the bank account attachment of the petitioner.

In the final judgment, the court allowed the writ petition, quashed the B6 notice dated November 14, 2005, issued by the first respondent, and directed the immediate lifting of the bank account attachment of the petitioner with the second respondent. No costs were awarded, and the connected Writ Petition Miscellaneous Petitions were closed as a result of the judgment.