9911796707
TMI Blog1980 (3) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... the benefits of partnership retired from the firm another deed was executed on 13th November, 1970. The firm had been granted a certificate of recognition under rule 25B of the Karnataka Sales Tax Rules, 1957 (hereinafter referred to as the Rules), on the ground that the firm was a bona fide producer of products of village industry referred to in the Fifth Schedule and entitled to exemption from payment of sales tax on 19th May, 1967. After some of the partners retired and the business was continued by virtue of the deed dated 13th November, 1970, it appears an application was filed to continue the recognition and the Commissioner continued such recognition by his order dated 23rd June, 1971. 3.. The firm as constituted under the deed da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this state of affairs continues and the certificate granted under rule 25B of the Rules would be valid until it is cancelled and could be cancelled only if the holder thereof ceased to be a bona fide producer or contravened any provisions of the Act or the Rules and no such contingency had occurred and the order of the Commissioner was unwarranted by law. It is argued that there was only a reconstitution of the firm and the old firm had continued and had at no time been dissolved and the recognition granted to the old firm would continue unless it became disentitled in terms of rule 25B(3). 7.. It is seen from the three deeds of partnership that there was an express provision that notwithstanding death or retirement of any partner, the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities the discontinuance of the business or change of place of business and rule 40 also makes provision that if a partnership is dissolved a report should be made to the authority by every person who was a partner of the firm. From the recitals in the partnership deed, it is clear that there was no dissolution of the firm at any time. The legistration as a dealer would continue and merely because there is change in the partnership, it does not mean that there is a dissolution of the firm as such and coming into existence of a new firm. The only effect of one of the partners retiring and a new partnership agreement having been entered into on 28th November, 1972, is that the firm had continued with a less number of partners than was the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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