1973 (10) TMI 47

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..... to undergo R.I. for three months. The order was confirmed In appeal, The applicant is a partner and manager of the firm, M/s. Satya Prakash Rajesh Kumar, which was assessed to sales tax over Rs. 36,000 for the year 1967-68. He had not deposited the tax in spite of notice. He was, therefore, prosecuted under section 14 of the Act. The only point that has been argued before me in this case is that .....

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..... that question I do not express my final opinion-he is not liable as the firm is the person who made the default and who should have been prosecuted." This authority was considered by a single Judge of this court in the case of Hira Lal v. State[1955] 6 S.T.C. 662; 1955 A.L.J. 813. It was distinguished. The learned single Judge further observed that in case it was laid down in the case of Public .....

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..... entity but only consists of Individual partners for the time being, for tax law, incometax as well as sales tax, it is a legal entity. If that be so, on dissolution, the firm ceases to be a legal entity." Their Lordships were not considering the case of prosecution of a partner or partners but they were considering the case of a dissolved firm for the purposes of assessment. A firm, even if it is .....

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..... and the other two partners were ladies belonging to the family of the applicant. Liability of the partners is joint and several. The applicant had himself filed revision before the Judge (Revisions) as managing partner of the firm and had obtained stay order on the condition that half of the sales tax shall be paid by him. Notice of demand was duly issued to him. Under section 2(c) of the Act a d .....

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..... all affect his liability for the offence. It was further observed: "There is no law that when an offence is committed by a firm, either all or none of the partners must be prosecuted." In the light of the above discussion, the prosecution of the applicant cannot be considered to be illegal. He was rightly convicted. The sentence too is not severe. There is no force in this revision. It is accordi .....

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