MATADIN BHAGWANDAS Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THIS petition under Article 226 of the Constitution is directed against certain proceedings taken by the Additional Tahsildar, Bilaspur, under the provisions of the Madhya Pradesh Land Revenue Code, 1959. for recovering from the petitioner arrears of sales-tax amounting to Rs. 44,166/- which were assessed on sales made by Messrs. Bisahoolal Bajranglal of Akaltara.

(2.) THE facts giving rise to this petition, shortly stated, are these. One Bisahoolal and certain other persons carried on business at Akaltara under the name and style of Bisahoolal Bajranglal. They had applied for registration in the year 1947 and obtained a registration certificate bearing No. Jagr/94 dated 6 September 1947. This concern discontinued its business with effect from 15 April 1952 and its registration certificate was, by an order of the Assistant Commissioner of Sales tax, Bilaspur, dated 31 March 1962, cancelled from that date. Even so, on 21 october 1961, it was assessed to a tax of Rs. 20,551. 69 on the sales it had made in the year 1949-50 and, on 31 October 1961, it was similarly assessed to a tax of rs. 23,635. 18 for the year 1950-51. Notices of demand were duly issued and served on Bisahoolal on 23 September 1963. In answer, he made to the Deputy commissioner of Sales Tax, Jabalpur, an application dated 26 September 1963 asking for one month's time on the ground that Matadin (petitioner), who had been charged with the responsibility of paying the taxes, was on a pilgrimage. Thereupon, a revenue recovery certificate was issued and proceedings under the code of 1959 for recovering the arrears of tax were taken against the petitioner. He filed before the Sales Tax Officer, who had been clothed with the powers of an additional Tahsildar, an application dated 20 November 1963 objecting to the proceedings taken against him. By an order dated 28 December 1963, that objection was rejected. Being aggrieved, the petitioner filed two successive appeals against that order, but they were dismissed by the Sub-Divisional Officer, bilaspur, and the Commissioner on 8 May 1964 and 9 June 1964 respectively. Then, by an order dated 7 August 1964, the Additional tahsildar created, on a sum of Rs. 19,500. 39 payable to the petitioner and standing to his credit in the books of the firm Messrs. Laxmi Mill Stores, Bilaspur, a charge for the arrears of tax. By another order dated 26 October 1964, Gyarsilal, another partner of Messrs. Laxmi mill Stores, Bilaspur, was requested to intimate if he was willing to be appointed a receiver of the petitioner's share of profits in the business of that firm. The petitioner has moved this Court for relief mainly on the ground that he had nothing whatsoever to do with the concern Bisahoolal Bajranglal, that he was in no way liable for the arrears of tax due from that concern and that recovery proceeding initiated against him were wholly without jurisdiction.

(3.) THIS petition has been resisted mainly on the ground that, on the facts and in the circumstances of the case, proceedings taken for recovery of the arrears of tax against the petitioner were fully justified under the provisions of Section 33 (4) of the Madhya Pradesh General Sales Tax Act, 1958 According to the respondents, the business carried on in the name of Bisahoolal Bajranglal was owned by a Hindu undivided family of which the petitioner was a member Further, that joint family had interest in the firm Laxmi Mill Stores and the petitioner entered into that partnership as representing the joint family. Finally, when there was a partition of the joint family, the petitioner expressly undertook to discharge the family debts, including arrears of tax.