SHRI KASTURI LAL Vs. UNION OF INDIA

JUDGEMENT

(1.) A partnership firm, M/s. Ruby Electronics Corporation, sought a registration certificate as a dealer under the Bengal Finance (Sales Tax) Act, 1941, as extended to the Union Territory of Delhi. The Commissioner of Sales Tax in exercise of the powers vested in him under section 8-A of the Act asked the firm to give a security up to the amount of Rs. 5,000 for the payment of tax levied under the Act for which the firm may become liable. The petitioner, Kasturi Lal, executed the requisite surety bond on 14th July, 1966. A Copy of that bond has been filed by the respondents as annexure R-1. Thereafter, on the issuance of the registration certificate the partnership firm carried on the business as a dealer. The partnership firm which was "at Will" was dissolved on 6th June, 1968, vide deed of dissolution. Another partnership was formed vide partnership deed executed on 8th June, 1968. A Copy of that deed is annexure E to the Writ Petition. Two of the partners of the original firm agreed to admit Kesar Singh as a partner in the business of radios and transistors manufacture which business was being carried on by earlier partnership firm in the same name and style of M/s. Ruby Electronics Corporation. The business premises, however, were changed from 69, Najafgarh Road, New Delhi to H-58, Bali Nagar, New Delhi. This partnership was also dissolved vide a deed of dissolution on 28th May, 1969. Thereafter M/s. Ruby Electronics Corporation has become a propriety concern of one of the original partners, namely Yashpal Gulati.

(2.) IT is the admitted case of the parties that the subsequent partnership and also the propriety concern continued to carry on the business under the registration certificate issued by the sales tax authorities to M/s. Ruby Electronics Corporation.