SREEMATI VASANT TANNA Vs. STATE OF BIHAR

JUDGEMENT

(1.) In this writ application the petitioners pray for quashing of annexures 1 and 2 series. Annexure 1 is the copy of an order of the Assistant Superintendent of Commercial Taxes, Jamshedpur, rejecting the application of the petitioners filed on 5th January, 1970, wherein the notices issued under Section 21 of the Bihar Sales Tax Act, 1959 (hereinafter referred to as the "Act"), were held to be legal and valid as the petitioners were transferees of the business of Indian Oil Agencies (hereinafter referred to as the "Oil Agencies"), as contemplated under Section 24 of the Act. Annexure 2 series are notices under Section 21 of the Act issued to various parties.

(2.) According to the case of the petitioners, Messrs. Bharat Gas and Oil Distributors (hereinafter referred to as the "Bharat Gas") are a partnership business carried on by petitioners Nos. 1 and 2. The partnership was entered into on 14th January, 1969. Prior to that date, the Oil Agencies were carrying on business in various commodities, including the sale of Indane gas as agents of the Indian Oil Corporation (hereinafter referred to as the "corporation"). Both these firms were registered under the Act. The Oil Agencies were assessed to sales tax for the years 1966-67, 1967-68 and 1968-69. The petitioners aver that, on 14th January, 1969, the local office of the corporation took steps for termination of the contract of the said corporation for the supply of Indane gas to the Oil Agencies and gave the agency to the firm of the petitioners, namely, Bharat Gas. Indane gas was thereafter supplied by the corporation to the firm of the petitioners from January, 1969, in place of the supply that was being made to the Oil Agencies. It has been explained in the writ petition that, since fresh appointment of agency and contract was likely to take time, indents were being made in the name of the Oil Agencies, although the actual supply was being made to Bharat Gas. The petitioners thus claim to be carrying on only a part of the business that was being carried on by the Oil Agencies.

(3.) It appears that, since considerable arrears were due to the sales tax department from the Oil Agencies, the sales tax authorities, treating the petitioners to be the transferees of the entire business of the Oil Agencies, issued notices under Section 21 of the Act to various parties. The notices, after stating that certain sum of money was payable under the Act by the Bharat Gas, stated that action was being taken under Section 21. A few lines from the notices will make it clear that the Bharat Gas were being treated, within the meaning of Section 24 of the Act, as transferees from the Oil Agencies. They are as follows : Whereas a sum of...is payable by Bharat Gas and Oil Distributors, Bistupur (dealer) of...who has failed to make payment of such amount and on account of S. T. dues against M/s. Indian Oil Agency, Bistupur.... Copies of such notices were sent to Bharat Gas, the memo portion stating "Copy to...for information since you are treated as transferee of M/s. Indian Oil Agency, Bistupur.