SPECIAL LIABILITY IN CERTAIN CASES

 

SECTION ‑ 42

 

[POINT AND SEVERAL LIABILITY OF CERTAIN CLASS OF DEALERS]

 

(1)        Where a works contractor appoints a sub‑contractor, who executes the works contract, whether in whole or in part, the contractor and the sub‑contractor shall both be jointly and severally liable to pay tax in respect of transfer of property in goods whether as goods or in some other form involved in the execution of the works contract by the sub‑contractor.

(2)        If the contractor proves to the satisfaction of the assessing authority that the tax has been paid by the sub‑contractor on the sale of the goods involved in the execution of the works contract by the sub‑contractor and the assessment of such tax has become final, the contractor shall not be liable to pay tax on the sale of such goods but he shall be entitled to claim input tax, if any, in respect of them if the same has not been availed of by the sub‑contractor.

(3)        Where an agent purchases or sells any goods on behalf of a principal, such agent and the principal shall both be jointly and severally liable to pay tax in respect of the purchase or sale of goods by the agent.

(4)        If the principal on whose behalf the agent has purchased or sold the goods proves to the satisfaction of the assessing authority that the tax on such goods has been paid by the agent and the assessment of such tax has become final, then, the principal shall not be liable to pay tax on such goods but he shall be entitled to claim input tax, if any, in respect of them if the same has not been availed of by the agent.

 

SECTION ‑ 43

 

[LIABILITY OF PARTITIONED HINDU FAMILY, DISSOLVED FIRM ETC. TO TAX]

 

(1)        Where a dealer is an undivided Hindu family, firm, or other association of persons, and such family, firm or association is partitioned, dissolved or disrupted, as the case may be,

(a)        the tax payable under this Act by such family, firm or association of persons for the period upto the date of such partition, dissolution or disruption may be assessed as if no such partition, dissolution or disruption had taken place and all the provisions of this Act shall apply accordingly; and

(b)        every person who was at the time of such partition, dissolution or disruption, a member of an undivided Hindu family or association of persons or partner of a firm shall, notwithstanding such partition, dissolution or disruption, be liable severally and jointly for the payment of the tax including interest and penalty, if any, payable under this Act by such family, firm or association of persons, whether assessment is made prior to or after such partition, dissolution or disruption.

 

(2)        Where the registration certificate of a dealer is cancelled under this Act for reasons other than that of a partition of undivided Hindu family or dissolution or disruption of a firm or association of persons, the tax payable under this Act by such dealer for the period upto the date of cancellation of the registration certificate may be assessed on such dealer as if no such cancellation had taken place and all the provisions of this Act shall apply accordingly.

(3)        If the business carried on by the dealer is discontinued after I death, his legal heirs or representatives shall be liable to pay out of t estate of the deceased, to the extent the estate is capable of meeting t liability on account of tax, interest or penalty due from the dealer um this Act, whether such tax, interest or penalty has been assessed before his death but has remained unpaid, or is assessed after his death.

 

SECTION ‑ 44

 

[TRANSFER OF BUSINESS]

 

Where a dealer registered or liable to pay tax,

(a)        dies; or

(b)        transfers or otherwise disposes of his business in whole or in part or

(c)        effects any change in the ownership of his business,

 

in consequence of which he is succeeded in the business or p thereof by any other person and such successor in business carries such business either in its old name or in some other name, such successor shall for all the purposes of this Act be deemed to be and to have always been registered as if the certificate of registration of such dealer had initially been granted to the successor; and he shall be liable to discharge 1 liabilities of such dealer. The successor shall, on application to I assessing authority, be entitled to have the registration certificate amended accordingly.

 

SECTION ‑ 45

 

[LIABILITY TO PAY TAX IN RESPECT OF GOODS SPECIFIED SCHEDULE G]

 

(1)        Notwithstanding anything to the contrary contained in other provisions of this Act, tax on sale or purchase of goods specified in Schedule G, shall be levied and collected on the sale or purchase price, maxim retail price, face value or the quantity of such goods at the rates an~ the stage of sale or purchase and under the circumstances mentioned against such goods in the said Schedule.

(2)        Save as otherwise provided in sub‑section (1), no tax under this shall be levied and collected on sale or purchase of goods specified Schedule G.