9911796707
TMI Blog1973 (7) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... ereafter, she continued to carry on the business after her husband's death. At that time sales tax assessment proceedings were pending against the Steel Co. for the year 1962-63 and a notice was issued to the petitioner in that respect. The petitioner protested to the assessing authority on the footing that there was no provision in the Bengal Finance (Sales Tax) Act, 1941, as extended to Delhi, permitting an heir of a deceased dealer being assessed, particularly as during the accounting year in question it was the deceased who was doing the business. A copy of this letter is annexure A to the writ petition. This view was not accepted by the assessing authority. A sum of Rs. 2,920.75 was assessed as sales tax and the petitioner was directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being the dealer and has to be deemed to be and to have always been registered as the dealer. The first question that arises for consideration is whether a property which passes at the death of an assessee is also included within the term of this provision. It has been held by a Division Bench of the Calcutta High Court in Bibhas Chandra Gon and Others v. The State of West Bengal and Another[1964] 15 S.T.C. 277., on a construction of this very Act, that the transfer contemplated by this section includes a transfer brought about by the death of the registered dealer. That was a case of an intestate succession and the observations of the court in this behalf are to be found at page 280 of the Report. It runs as follows: "The petitioners argu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stricted to transfers effected by the petitioner himself. Thus, the question is, whether this provision is limited to transfers inter vivos. It is also submitted that the word "transfer" should be read as understood in the Transfer of Property Act. I do not agree that a limited meaning should be given to the word "transfer" in these proceedings. There is no reason why the section should be restricted only to transfers effected by a living person such as sales or leases. The provision can best be construed by analysing the reasons which could have prompted the Legislature to have a provision of this type. When a business is transferred, it is obviously necessary for the State to continue to tax the registered dealer whoever he may be. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the original owner or after his death, or whether it is effected by a will or by the law of succession operating in the case of an intestate succession. Thus, I come to the conclusion that the proper construction to be placed on the section is that it also governs the case of the present petitioner. Reference has also been made by the learned counsel for the respondents to the decision of the Bombay High Court reported as Collector of Sales Tax, Bombay State v. Parimal Brothers[1962] 13 S.T.C. 647. That was a case arising under the Bombay Sales Tax Act, 1953. The section there is 26(1) of the Bombay Act. There is a distinct provision in that Act that the transferor will pay the tax and the court held that this liability even extende ..... X X X X Extracts X X X X X X X X Extracts X X X X
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