A V RAJASHEKARAPPA Vs. COMMERCIAL TAX OFFICER HUBLI

JUDGEMENT

(1.) Three orders of assessment under the provisions of the Central Sales Tax Act were passed on a dissolved firm which was carrying on business under the name and style ' Makanur Malleshappa A. Onkarappa & Co in respect of the assessment years 1960-61, 1961-62 and 1962-63. The petitioner is an ex-partner of the said firm. The said orders of assessment were challenged before this Court in three writ petitions, WPs. 1252, 1253 and 1256 of 1967, on the 'ground that there was no provision in the Karnataka Sales Tax Act the provisions of which had been adopted by the Parliament in sc far as the procedure for levy and collection o,f Central Sales Tax was concerned, for assessing and collecting the Central Sales Tax from a dissolved firm, and, therefore the assessments were bad and were liable to be quashed. The said plea was accepted by this Court and the orders of assessment were quashed. Later on, the Central Sales Tax Act was amended by Central Act 28 of 1969. By S.9 of the said amending Act, all orders of assessment passed in respect of the Central Sales Tax which had been passed before 9-6-1969 were validated. Some time thereafter, the Karnataka Sales Tax Act was amended by Act 5 of 1972 substituting a new section for S.15 of that Act authorising the passing of an order of assessment on a. dissolved firm with effect from the date on which the principal Act i.e Kamataka Sales Tax Act came into force. Thereafter on 11-1-1973 the Commercial Tax Officer issued notices to the petitioner calling upon him to pay the Central Sales. Tax as per the orders of assessment. Aggrieved by the said notices, the petitioner has filed these petitions.

(2.) Sub-sec,( 2) of Section 15, after the amendment, reads as follows : When a firm liable to pay the tax or penalty is dissolved, the assessment of the tax and imposition of penalty shall be made as if no dissolution of the firm had taken place and every person who was at the time of dissolution a partner of the firm and the legal representative of any such person who is deceased, shall be jointly and severally liable to pay the tax or penalty assessed or imposed.

(3.) The new S.15 was given retrospective effect from the date on which the the principal Act came into force viz., 1-10,1957. Hence it has to be held that it must be deemed to have been in force on the dates on which the orders of assessment for the years .1960-61, 1961-62 and 1962-63 were passed. In view of the provision relating to validation of assessments found in Central Act 28 of 1969 and the amendment of Sec. 15 of the Karnataka Sales Tax Act 1957 with retrospective effect by Karnataka Act 5 of 1972 the orders of assessment passed in respect of the years 1960-61, 1961-62 and 1962-.63 which were set aside in WPs. 1252, 1253 and ,1256 of 1967 revived and became operative as the ground on which they had been set aside no longer existed. Consequently all the persons who were partners of the dissolved firm at the time of dissolution became liable to pay the sum due Under the. orders of assessment. The sbove view is supported by the, Full Bench decision of this Court in Gill & Co. (P) Ltd. v. CTO 31 STC. 336-(l973) 1 Mys.L.J. 45-1973 Kar.L.J. 3, FB.. According to the above decision, there is no necessity to pass any fresh orders of assessment against, the ex-partner of the dissolved firm in order to recover from him the tax held to be due under the orders of assessment referred to above.