KUNJ BEHARI LAL Vs. SALES TAX OFFICER MORADABAD

JUDGEMENT

(1.) A Division Bench of this Court has referred the following question of law to a Full Bench for its opinion:

(2.) THE question referred to us must be considered with reference to the provisions of the Act unhampered by any decision concerned with the Income-tax Act because no provision exists in the Income-tax Act analogous to Section 3-C which will be adverted to presently.

(3.) BECAUSE of Section 3-C (1) (b) of the Act thus even after discontinuance of business by a joint Hindu family taxes assessed and penalties imposed on it for a period prior to such discontinuance become the liabilities of every member of such family including its Karta as if he himself were a 'dealer'. If any member of such a family fails to pay the tax or penalty liabilities of the Hindu undivided family, he becomes a defaulter. In such an event if the Karta or any other member of the Hindu undivided family which has discontinued business is nominated in the certificate envisaged by Section 33 of the Act, he would be, in our opinion, liable to be arrested in the course of recovery proceedings for realization of arrears of sales tax and penalty due from the Hindu undivided family. In our opinion, C. M. W. No. 5121 of 1964, D.00 2-3-1965 (All.) (supra) was correctly decided. We are in respectful disagreement with the decision of this Court in (1972) 29 STC 150 (All) (supra) to the extent that it took a contrary view.