Liability to pay duty in case of transfer of business

(1) When the ownership of the business of the licensee or any other person, liable to pay duty under this Act, is entirely transferred, both the transferor and the transferee shall jointly and separately be liable to pay any duty and penalty, if any, payable in respect of such business and remaining unpaid at the time of the transfer and the transferee shall also be liable to pay duty on sale or consumption by the transferee on and from the date of such transfer and shall forthwith apply for grant of registration certificate unless such certificate is already possessed by him. (2) Subject to the exemption given under section 9, where a licensee or any person other than a license, liable to pay duty under the Act, transfers the ownership of a part of his business, the transferor shall be liable to pay tax in respect of that part of transferred business.