TMI Blog1970 (3) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... silk and zari embroidered sarees which came under the description of handloom cloth and handicrafts under the export promotion schemes for handicrafts. It is common ground that in connection with the export of handicrafts and ready-made garments, certain import licences were issued to the firm based on the percentage of exports effected by it. These import licences were issued in respect of art silk yarn, embellishments and sewing machinery. The petitioners concede that in respect of some of these import licences goods were imported through various ports in India, from which ports the goods were directly despatched to the firm's commercial business place within this State for being used in the manufacture of clothes and ready-made garments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to furnish a list of sales effected in the State of Bombay (the present State of Maharashtra) was shown as 'nil' and was duly certified by the Chartered Accountant. The certificates of the Chartered Accountant certifying that all the three statements were based on books of accounts of the firm were also sent to the respondent. Subsequent thereto, on 9th June, 1965, the firm was dissolved by a deed of dissolution executed by the three partners." Therefore, the petitioners plead that in the absence of any single instance of sale by the quondam firm to any person in Bombay in the State of Maharashtra, the proceedings initiated by the respondent are irregular. On the information furnished by the petitioners, the respondent pursued the matt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade as claimed. The firm once again requested the respondent to furnish any material on which he proposed to act. The petitioners through their representative attempted to obtain such material during August, 1966, but they were of no avail. It is in those circumstances claimed that the proceedings sought to be initiated by the respondent by his notice dated 4th March, 1966, are wholly without juris- diction and therefore a writ of prohibition should issue. The petitioners' case is that on the facts the respondent had no jurisdiction to initiate any further action on the petitioners and in any event their legal contention is that the provisions of the Bombay Sales Tax Act, 1959, do not provide for assessment of a firm or its partners after t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as L. V. Veeri Chettiar and Another v. Sales Tax Officer (XI), Enforce- ment Branch, Greater Bombay, Bombay-10 [1970] 26 S.T.C. 579. to be read with section 18 therein. The fact that the firm has been dissolved is not disputed before us. These sections enable the revenue to call for and recover the tax dues from the partners of the quondam dissolved legal entity. But such an action for personal recovery can be undertaken provided the tax payable by the partnership firm was reckoned either before its dissolution or after its dissolution. It therefore follows that there should be an assessment on the dissolved firm. For this however, the Act should provide for specific machinery to rope in dissolved firms as well for being assessed to tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales Tax Act, 1959. In fact, the petitioners admit that they imported the goods at the Bombay Port, but they claim that they have removed the goods from Bombay to their business place at Salem. This is a matter which has to be established by acceptable proof adduced by the petitioners. It may be that the quondam firm disposed of the other licences in a manner claimed by them. But in so far as the goods imported by them at Bombay are concerned, the onus is upon them to establish that they did not deal with the goods in Bombay and they removed the same for their own purposes to their business place in the district of Salem. Paragraph 5 of the affidavit in support of this writ petition clearly reflects on the conduct of the petitioners. They w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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