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TMI Blog1970 (2) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... rised for the issuance of 'C' forms for supplying them to the various parties having its old registration number?" It appears that a partnership firm carried on business in kairana at Ballia. It was registered under the Central Sales Tax Act. On 6th December, 1967, one of its partners died and the firm was reconstituted by the remaining partners which continued the business in the firm name of M/s. Mahadeo Ram Ram Jatan Ram. At the time of the reconstitution of the firm the registration certificate in the name of the old firm as also the 'C' forms obtained in the name of the old firm which were lying unused were surrendered to the Sales Tax Officer. Later on, however, it was discovered that in respect of certain purchases already made by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the requisite 'C' forms to the sellers. Had the firm not been reconstituted such 'C' forms would have been furnished in due course. Even after the reconstitution of the firm, 'C' forms which had previously been issued in the name of the old firm could have been furnished to the selling dealers. There would have been no difficulty in that procedure. The difficulty has arisen because the 'C' forms issued in the name of the old firm were surrendered. The sales tax authorities formed the opinion that the 'C' forms could be issued to a registered dealer and inasmuch as the old firm had been dissloved, 'C' forms could not be issued in the name of the dissolved firm. It is true that the rules contemplated the issuance of 'C' forms to an existing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of this section. The effect of this section is that by a legal fiction a firm which has discontinued business or which has been dissolved shall be deemed to be an existing firm for the purposes of assessment of tax and penalty in respect of its turnover prior to the date of dissolution or discontinuance of business. When the assessment of such a firm takes place, the firm in fact ceases to exist, but as a result of the legal fiction enacted in this provision, the firm is deemed to be in existence and its dissolution has to be ignored. It follows, therefore, that a dissolved firm can also ask for the issuance of 'C' forms on the basis of its registration certificate and even can ask for registration, if it had not been previously registe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to continue after discontinuance for the purpose of assessment under Chapter IV." It is not disputed that by virtue of the provisions contained in section 9(3) of the Central Sales Tax Act, section 3-C of the U.P. Sales Tax Act would be applicable to the proceedings under the Central Sales Tax Act. Therefore, for purposes of the Central sales tax also the erstwhile firm shall be deemed to be in existence. It is true that nonsupply of form 'C' by a registered dealer to the selling dealer affects the assessment of the selling dealer who shall have to be taxed at a higher rate and in that sense it is possible to say that the furnishing of 'C' forms by a purchasing dealer does not affect his assessment and as such section 3-C may not be applic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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