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TMI Blog1989 (5) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1979, amounting to Rs. 58,394.10. The application in RN-13 is concerned with assessment and realisation of tax dues and penalty for the four quarters ending August, 1980, amounting to Rs. 35,701.44. The Case No. RN-14 relates to assessment and collection of tax dues and penalty amounting to Rs. 3,88,750 for the four quarters ending August, 1981. Since all these applications are analogous, these are being dealt with by a single judgment. 2.. The facts of the case may be briefly stated thus: The Grand Smithy Works, a partnership firm, is a registered dealer under the Bengal Finance (Sales Tax) Act, 1941. The firm did not furnish quarterly returns and pay tax as required under the Act and Rules. The Commercial Tax Officer, as required u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the years in question, due to general recession, power and gas shortage and severe labour unrest there was considerable reduction in production and sale of goods; consequently there was no taxable turnover and hence they were not liable to file returns and pay any tax. They have also alleged that the assessments were barred by limitation and that since Shiva Charan Laul, one of the partners of the firm and a certificate-debtor, died on October 28, 1987, the certificate proceedings ceased to be in force and are void. Hence they prayed that the ex parte assessments and the certificate proceedings be quashed. 4.. The learned State Representative, appearing on behalf of the respondents, stated that the ex parte assessments were duly mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the question whether the assessments were duly made and communicated to the applicants, we called for the relevant case records. These were produced in the court and the learned counsel for the applicants was given an opportunity to go through them. 6.. The learned counsel for the applicants challenged the demand for payment of tax and argued that unless a notice as required under section 10(2) of the Bengal Finance (Sales Tax) Act, 1941, was issued by the Commissioner, no tax was payable and as no such notice was issued to the applicants the question of payment of any tax by the firm did not arise. This is not the correct legal position. Sub-section (2) of section 10 of the Act read with rules 21 and 36 of the Rules framed under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ending August 31, 1981, notice in form VI was issued on July 8, 1984, by the Commercial Tax Officer. In response to such notice Shri S.S. Lohia and Shri S.P. Budhia, authorised advocate, appeared before the Commercial Tax Officer and applied for adjournments on several occasions and ultimately failed to produce any books of account for which no cogent reason could be given. The Commercial Tax Officer thereafter made an ex parte assessment on August 28, 1985 and issued demand notice in form VII and handed it over to Shri S.P. Budhia. Shri Budhia also filed vakalatnama signed by Shri Shiv Kumar Agarwala, a partner, on behalf of the firm. 9.. It will be evident from the facts stated above that the ex parte assessments were duly made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not be acting on behalf of the partnership firm before the assessing officer, as only one of the partners, namely, Shiv Kumar Agarwala signed the vakalatnama. Section 19 of the Indian Partnership Act, 1932, read with section 20 thereof defines the general extent of a partner's agency. The "implied authority" of a partner is conferred by section 19 of the Act and the term may, by contract between the partners, extend or restrict such "implied authority" of any partner under section 20 of the Act. In course of the hearing we had asked for production of the partnership deed. A xerox copy was produced and it is abundantly clear upon a reference to the terms thereof that instead of restricting the "implied authority" it has been affirmatively ..... X X X X Extracts X X X X X X X X Extracts X X X X
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