MURARILAL MAHABIR PRASAD & ORS. versus SHRI B. R. VAD & ORS.

MURARILAL MAHABIR PRASAD & ORS. versus SHRI B. R. VAD & ORS.

A dissolved firm cannot be assessed or re-assessed to sales tax unless the statute specifically permits such assessment expressly or by necessary implication. The Bombay Sales Tax Acts of 1953 and 1959 do not contain provisions allowing assessment or recovery proceedings against a dissolved firm; such proceedings...

Source-derived case information.

Parties
Appellant: Murarilal Mahabir Prasad & Ors.; Respondent: Shri B. R. Vad & Ors.
Jurisdiction
India
Judgment Date
05 September 1975
Procedural Posture
Civil Appeal / Appeal by Special Leave From Judgment of Bombay High Court Dated 8th December, 1969
Outcome
Appeal dismissed with costs.
Legal Topics
Assessment of Dissolved Firm, Sales Tax, Recovery Proceedings, Statutory Interpretation
Taxation Assessment of Dissolved Firm Sales Tax Recovery Proceedings Statutory Interpretation

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Parties

Murarilal Mahabir Prasad & Ors.

Appellant

Shri B. R. Vad & Ors.

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From Judgment of Bombay High Court Dated 8th December, 1969

Legal Issues

  1. 1 Whether a dissolved firm can be assessed or re-assessed to sales tax in respect of its pre-dissolution turnover under the Bombay Sales Tax Act, 1953 and 1959

Ratio Decidendi

A dissolved firm cannot be assessed or re-assessed to sales tax unless the statute specifically permits such assessment expressly or by necessary implication. The Bombay Sales Tax Acts of 1953 and 1959 do not contain provisions allowing assessment or recovery proceedings against a dissolved firm; such proceedings must be taken against the erstwhile partners. Majority dismissed the appeal; dissent held assessment orders in the name of a dissolved firm invalid.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.