Decided on December 21,1959

Natwarlal Chandulal Shah Appellant


- (1.)THIS is an application for revision against the order of the Additional Collector of Sales Tax dated 21st February, 1959.
(2.)THE applicant received a notice in Form XLI from the Sales Tax Officer demanding a sum of Rs. 2,348 being the tax and the penalty due on assessment for the period from 1st April, 1953, to 31st March, 1954, of the business called Messrs R. Maganlal and Co. Against this order an appeal was filed with the Assistant Collector of Sales Tax (Appeals), Range II, Ahmedabad, who dismissed the same. The Additional, Collector of Sales Tax who heard the revision application against the said dismissal order also confirmed the order of the Assistant Collector. The facts of the case are as under: -
(3.)ONE Maganlal Talakshi was carrying on a business in the name of R. Maganlal and Co. The business was of selling bidis and Messrs R. Maganlal and Co. had the sole agency to sell bidis manufactured by Messrs Thakur Savendekar and Co. The firm of Messrs R. Maganlal and Co. was registered as a dealer under registration certificate No. 10K 447. At the time when this application was made, Maganlal Talakshi was carrying on business with one Kantilal Maganlal as his partner, but it is understood that Kantilal Maganlal left the partnership soon after the firm was registered and Maganlal Talakshi had been thereafter carrying on the business as a sole proprietor. On 29th March, 1956, Maganlal Talakshi wrote to the Sales Tax Officer of his division informing him that the address of the firm was changed and that there was a change in the ownership of the business. He further gave him the names of the three partners of the firm, as Maganlal Talakshi, Natwarlal Chandulal and Ramlal Chunilal. With this letter, the registration certificate and a copy of the partnership deed dated 19th January, 1956, were also enclosed. This action was taken by him under Section 25 of the Bombay Sales Tax Act, 1953. The Additional Collector of Sales Tax stated in his order that no action seems to have been taken on the said letter dated 29th March, 1956, by the Sales Tax Officer.
The business of Messrs R. Maganlal and Co. was assessed under Section 14 of the Act on 11th July, 1956, for the period from 1st April, 1953, to 31st March, 1954 and Rs. 2,348 were found due. This amount included penalty. The Additional Collector of Sales Tax states in his order that as this amount was not paid by the above dealer, the Sales Tax Officer in due course issued notice to the applicant and also to Ramlal Chunilal who was the third partner with effect from 19th January, 1956, for the recovery of the amount. It may be noted here that no notice appears to have been served on the firm of Messrs R. Maganlal and Co.

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