1989 (7) TMI 316

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..... e writ petitioners. It will be noticed that there are no arrears of sales tax due from the writ petitioners. Some money for some commercial transaction between the Sirpur Paper Mills Limited and the writ petitioners is allegedly due to the writ petitioners. It is mentioned in the impugned proceedings that there is an account of Sri K. Srihari Rao, one of the partners of M/s. Jagresree Mines and Minerals, with second respondent, and the second respondent is directed thereunder not to pay an amount of Rs. 87,246 to Sri K. Srihari Rao or to any person authorised by M/s. Jagresree Mines and Minerals. It will be noticed that K. Srihari Rao Company is not a defaulter. The defaulter is alleged to be M/s. Jagresree Mines and Minerals of which o .....

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..... uch person to the extent of the amount referred to in the receipt. (4) Any person discharging any liability to the dealer after receipt of the notice referred to in this section, shall be personally liable to the assessing authority to the extent of the liability discharged or to the extent of the liability of the dealer for the amount due under this Act, whichever is less. (5) Where any person to whom a notice under this section is sent proves to the satisfaction of the assessing authority that the sum demanded or any part thereof is not due by him to the dealer, or that he does not hold any money for or on account of the dealer, then nothing contained in this section shall be deemed to require such person to pay the sum demanded or an .....

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..... in law to recover the amount from any of the partners/proprietor of M/s. Jagresree Mines and Minerals, he is free to do so according to law. It will be noticed also that the writ petitioner came to know of the impugned proceedings dated 23rd March, 1989, in view of the communication of letter S.Tax/9795 dated 24th March, 1989, by the Sirpur Paper Mills Limited to the writ petitioner. Further, it is the case of the writ petitioner and the Sirpur Paper Mills Limited that they have no independent account of Sri K. Srihari Rao, partner of M/s. Jagresree Mines and Minerals, with them. Therefore, the impugned proceedings dated 23rd March, 1989, issued by the Deputy Commercial Tax Officer, Kaghaznagar, are quashed and the writ petition is allo .....

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