9911796707
TMI Blog1969 (4) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondents not to execute the warrant of arrest against the petitioner. The contention of the petitioner is that he is not liable to arrest in proceedings for recovery of tax assessed on the firm. That contention is founded on the circumstance that no notice of demand has been addressed to the petitioner. It is urged that there is no obligation on the petitioner to pay the tax assessed on the firm without such notice of demand, and unless such notice is issued to the petitioner, he cannot be said to be in default, and, therefore, no question arises of taking coercive proceedings for recovering the tax from him. There can be no dispute that the U.P. Sales Tax Act envisages the assessment of a firm as an entity distinct from its partn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ners are liable in the same manner as any other debt of the firm. Under the law relating to partnership, each partner is jointly and severally liable for the debts of the firm and a creditor is entitled to ultimately proceed against the personal assets of each partner for recovering the debt. It is said that while that may be so it is not open to the sales tax authorities to recover the tax from an individual partner by taking coercive proceeding for recovery of the tax from him. Such a plea was taken and was repelled in Sahu Rajeshwar Nath v. Income-tax OfficerCivil Appeal No. 1768 of 1967 decided on 4-9-1968; since reported at [1969] 72 I.T.R. 617. decided by the Supreme Court on appeal from the decision referred to above. The Supreme Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the purpose of recovery of an amount due under a decree. The result of the insertion of section 33 in the Act is to bring the recovery provisions under the U.P. Sales Tax Act on a par with section 46(2) of the Indian Income-tax Act. The considerations, therefore, which prevailed with the Supreme Court in Sahu Rajeshwar Nath(2) fully apply to the case before us. The several modes of satisfying a decree for money passed against a firm are available for recovering sales tax due from a firm, from its individual partners. These modes of recovery include the arrest and detention of the individual partners. That is clear from section 51 of the Code of Civil Procedure which among other modes provides for the execution of a decree by the arrest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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