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1967 (4) TMI 173 - SC - VAT and Sales TaxWhether the purchaser of business carried on by a dealer as defined in the Madras General Sales Tax Act, 1939 can be made liable for arrears of sales tax due from the dealer in respect of transactions of sale which took place before the transfer of the business under rule 21-A of the Rules framed in exercise of the powers conferred on the State Government by section 19 of the Act? Held that:- Appeal dismissed. Even on the assumption that the respondent undertook to pay the arrears of sales tax due by the transferor, it does not follow that there is a liability created inter se between the State Government on the one hand and the transferee on the other hand. To put it differently, it is not open to the State Government to rely on the instrument inter vivos between the transferor and the transferee and to contend that there is any contractual obligation between the transferee and the State Government who is not a party to the instrument
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