9911796707
TMI Blog1995 (1) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... n 15A-I of the Act?" 2.. M/s. Ramesh Electricals Trading Agencies is a reseller-cum-importer of electrical goods and bakelite. It was a partnership firm and was registered as such as a dealer under the Bombay Sales Tax Act, 1959 ("Act"). The partnership was, however, dissolved with effect from January 1, 1980 and the business, hitherto run by the partnership was taken over by one of its partners who carried on the same thereafter as his proprietary concern. After taking over the said business, the said partner (referred to as "the assessee") applied for new registration certificate as required by section 19(6) of the Act within the prescribed time. On such application being made, a fresh registration certificate was granted to him as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. He, therefore, confirmed the order of the Sales Tax Officer and dismissed the appeal. Aggrieved by the order of the Assistant Commissioner, the assessee went in further appeal to the Maharashtra Sales Tax Tribunal ("the Tribunal"). The Tribunal, after detailed discussion, held that even a transferee under section 19(6) of the Act is primarily liable under section 3 of the Act and hence liable to additional tax under section 15A-I of the Act. The Tribunal, therefore, held that a transferee was liable under section 3 of the Act like any other dealer and hence also liable to additional tax under section 15A-I of the Act if his turnover exceeds the specified limit. In that view of the matter, the Tribunal confirmed the order of the Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been made in section 19 of the Act regarding liability to pay tax in certain cases including cases where a person succeeds in the business of a dealer liable to pay tax under this Act. Section 19 of the Act, which is relevant for the present purpose, reads as follows: "19. Special provision regarding liability to pay tax in certain cases.- (1) Where a dealer, liable to pay tax under this Act, dies then,- (a) if the business carried on by the dealer is continued after his death by his legal representative or any other person, such legal representative or other person shall be liable to pay the tax due from such dealer under this Act or under any earlier law, in the like manner and to the same extent as the deceased dealer, and (b) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r under any earlier law, up to the time of dissolution, whether such tax (including any penalty) has been assessed before such dissolution but has remained unpaid, or is assessed after dissolution. (4) Where a dealer, liable to pay tax under this Act, transfers or otherwise disposes of his business in whole or in part, or effects any change in the ownership thereof, in consequence of which he is succeeded in the business or part thereof by any other person, the dealer and the person succeeding shall jointly and severally be liable to pay the tax (including any penalty) due from the dealer under this Act or under any earlier law, up to the time of such transfer, disposal or change, whether such tax (including any penalty) has been assessed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er himself." On a careful reading of section 19 of the Act in the light of the scheme of the Act and the provisions of sections 3 and 6 thereof, it is abundantly clear that section 19 of the Act, though put as a separate section, in truth and reality is a part and parcel of section 3 of the Act. Section 3 of the Act has to be read with this section. In cases dealt with in this section, the liability to pay tax under section 3 is on the persons specified in section 19 notwithstanding the nonfulfilment of any of the requirements thereof. For instance, in case of transfer of a business or succession of the business, the transferee or the successor has been made liable to pay tax under section 3 of the Act immediately from the date of transfe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aving turnover of sales or purchases exceeding ten lakh rupees in any year are thus made liable to pay the additional tax under this section. Reference to section 3 occurs therein merely because that is the real charging section. The expression "dealer liable to pay tax under section 3" appearing in section 15A-I, cannot be construed to exclude a dealer who is liable to pay tax under section 3 of the Act by virtue of any special provision contained in any other section of the Act, viz., section 19. To appreciate the true purpose of the above expression, the Act has to be read as a whole and the various provisions thereof construed and understood in their context and setting. 7.. For the reasons set out above, we are of the clear opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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