9911796707
TMI Blog1993 (12) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... short "the TNGST Act") and the Central Sales Tax Act, 1956 (Act 74 of 1956 for short "the CST Act") for the assessment years from 1973-74 to 1977-78. The aforesaid arrears as under the TNGST Act amounted to Rs. 6,00,692.18 and under the CST Act Rs. 1,14,440. Two other partners, it is said, died and their estates were available at the hands of their legal representatives. 2.. For the aforesaid tax arrears due by the partnership firm, efforts have been taken for realisation of the said arrears, by bringing to sale the lands and buildings belonging to the petitioners, situate at Oruthattu village, Nilakkottai taluk, Dindigul-Anna district at 11 a.m. on December 27, 1993, by issuance of proceedings in Roc. No. 3802/77-A3 under the TNGST Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther side, would get pierced, if a cursory look is made into the salient provisions adumbrated under section 19 of the TNGST Act, dealing with the liability of the firms. 7.. In appreciating and understanding the effect of rival submissions, as focussed above, better it is, to pen down section 19 of the TNGST Act, which reads as under: "19. Liability of firms.-(1) Where any firm is liable to pay any tax or other amount under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment. (2) Where a partner of a firm liable to pay any tax or any amount under this Act retires, he shall, notwithstanding any contract to the contrary, be liable to pay the tax or other amount remaining unpaid at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with himself to the performance of the promise, unless a contrary intention appears from the contract. Sharing of loss by default in contribution.-If any one of two or more joint promisors makes default in such contribution, the remaining joint promisors must bear the loss arising from such default in equal shares. Explanation.-Nothing in this section shall prevent a surety from recovering from his principal, payments made by the surety on behalf of the principal, or entitle the principal to recover anything from the surety on account of payments made by the principal." 11.. The enactment of a section, as above, constitutes a material variation from the rules of English law. The English rule is that all joint promisors must be sued joint ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partners of the firm as well as the so-called assets, as had been mentioned in the writ petition stated to be standing in the name of the firm. 13.. Learned counsel for the petitioner would, however, draw the attention of this Court to the decision of the Madhya Pradesh High Court in the case of Lalji v. Assistant Commissioner, Sales Tax, Raipur [1958] 9 STC 571 wherein their Lordships, constituting the Division Bench expressed at paragraph 5 (at page 573) thus: "5. Since the department could only assess the firm, the arrears of tax are, in the first instance, recoverable from its assets. Until the assets are realised or cannot be found, the action of the taxing authorities to try to realise the amounts of tax from the partners personally ..... X X X X Extracts X X X X X X X X Extracts X X X X
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