section 23
Liability to purchase tax on certain stocks of goods
The Maharashtra Sales Tax Act, 1979Tax1979106 sections6 chapters
Statutory text
- (1) Where a dealer, liable to pay tax under this Act,—
- (a) dies, or
- (b) transfers or otherwise disposes of his business, in whole or in part or effects any change in the ownership thereof, or
- (c) is a firm, company, society or other association of persons, or a trust, which is dissolved, liquidated, wound up, terminated or revoked, or
- (d) is a Hindu undivided family, and the family is partitioned, or
- (e) discontinues his business, and the stock of goods held by such dealer immediately before any of the aforesaid events occurs includes—
- (i) taxable goods purchased by such dealer from a person, who is not a Registered dealer, and
- (ii) taxable goods purchased by such dealer on a declaration given by him under section 10, 12 or 13, then the legal representative of such deceased dealer, or as the case may be, such dealer shall be liable to pay purchase tax, as if such representative or dealer had become liable to pay purchase tax under section 18 in respect of goods mentioned in clause (i) or under section 20 in respect of goods mentioned in clause (ii), as the case may be, and the provisions of section 18 or section 20 shall apply accordingly: Provided that, where the business is continued after any of the aforesaid events, the person continuing such business shall be liable to pay purchase tax under section 18 or 20, as the case may be; and all the provisions of sections 18 and 20 shall apply to such person as if he were a dealer liable to pay tax: Provided further that, if the person continuing such business shows to the satisfaction of the Commissioner that,
- (a) the goods referred to in clause (i) above have been resold by such person, or
- (b) in respect of goods referred to in clause (ii), the recitals, conditions or undertakings of the declaration given by such dealer under section 10, 12 or 13 are complied with by such person, then in respect of such goods, no purchase tax shall be levied under this section.
- (2) Where the certificate of registration issued to a dealer is cancelled on the ground that in the previous year his turnover of purchases or his turnover of sales did not exceed the relevant limits applicable to him under sub-section (4) of section 3, and the stock of goods held by him immediately before such cancellation includes any taxable goods purchased by him from a person, who is not a Registered dealer or includes taxable goods purchased by him on a declaration given under section 10, 12 or 13, then such dealer shall be liable to pay purchase tax on the purchase price of such goods in stock, as if such dealer had become liable to pay purchase tax under section 18 or 20, as the case may be, and the provisions of section 18 or 20 shall apply accordingly.
- (3) Where the certificate issued to a dealer or a person under sub-section (2) of section 59 is cancelled and the stock of goods held by such dealer or person immediately before such cancellation includes taxable goods purchased by him on a declaration given under that section, then such dealer or person shall be liable to pay purchase tax on the purchase price of such goods in stock, as if he had become liable to pay purchase tax under sub-section (3) of section 59, and the provisions of sub-section (3) of section 59 shall apply accordingly.
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