He shall be also liable to pay interest upto the date of payment of such tax.

Special provision regarding liability to pay tax in certain cases -1 30.

1. (1) Where a dealer, liable to pay tax under this Act, dies then,—
   • (a) if the business carried on by the dealer is continued after his death by his legal representative or any other person, such legal representative or other person, shall be liable to pay the tax (including any interest, amount forfeited and penalty) due from such dealer under this Act or under any earlier law, in the like manner and to the same extent as the deceased dealer, whether such tax (including any interest, amount forfeited and penalty) has been assessed before his death but has remained unpaid or is assessed after his death;
   • (b) if the business carried on by the dealer is discontinued whether before or after his death, his legal representative shall be liable to pay, out of the estate of the deceased, in the like manner and to the same extent as the deceased dealer would have been liable to pay if he had not died, the tax (including any interest, amount forfeited and penalty), due from such dealer under this Act or under any earlier law, whether such tax (including any interest, amount forfeited and penalty) has been assessed before his death but has remained unpaid, or is assessed after his death. Such legal representative shall, however, be personally liable for any tax (including any interest, amount forfeited and penalty) payable by him in his capacity as a legal representative if, while his liability for tax (including any interest, amount forfeited and penalty) remains undischarged, he creates a charge on or disposes of or parts with any assets of the estate of the deceased, which are in, or may come into his possession, but such personal liability shall be limited to the value of the assets, so charged, disposed of or parted with. He shall be also liable to pay interest upto the date of payment of such tax. Explanation.—For the purpose of the proceedings under this Act,—
     • (i) any proceedings taken against the deceased before his death shall be deemed to have been taken against the legal representative and may be continued against the legal representative from the stage at which they stood on the date of death of the deceased;
     • (ii) any proceedings which could have been taken against the deceased if he had not died, may be taken against the legal representative;
     • (iii) all the provisions of this Act shall apply accordingly as if the legal representative were the dealer himself;
     • (iv) any notice issued under this Act or under any earlier law or under the rules made under this Act or such earlier law shall be served on the legal representative and, if there be more than one legal representatives, on all of them, who are ascertained after diligent and bona fide inquiry by the Commissioner to be the legal representatives of the deceased dealer, and on such service of notice it shall be deemed to be sufficient notice to all legal representatives of the deceased dealer.
2. (2) Where a dealer, liable to pay tax under this Act, is a Hindu undivided family, and the joint family property is partitioned amongst the various members or group of members, then each member or group of members shall be jointly and severally liable to pay the tax (including any interest, amount forfeited and penalty) due from the dealer under this Act or under any earlier law up to the time of the partition, and the interest due on such tax upto the date of payment thereof, whether such tax (including any interest, amount forfeited and penalty) has been assessed before partition but has remained unpaid, or is assessed after partition : Provided that, on the partition of the Hindu undivided family, the Karta or any member of such family, shall intimate the date of partition of the family within 60 days thereof to the Commissioner by a notice in writing in that behalf: Provided further that, if no such intimation is given within 60 days from the date of partition, the liability of every member of such family shall continue in respect of any business done by any member or group of members after the date of partition until the date on which such intimation is received by the Commissioner: Provided also that, where such Hindu undivided family is partitioned, the tax payable under this Act by such Hindu undivided family upto the date of partition, shall be assessed, as if no such partition had taken place and a notice in respect of such assessment of the Hindu undivided family shall be served on the person who was the last manager of the Hindu undivided family, or, if such person is dead, on all adults who were members of the Hindu undivided family immediately before the partition.
3. (3) Where a dealer, liable to pay tax under this Act, is a firm or an association of persons and such firm or association is dissolved, then—
   • (a) the tax payable under this Act by such firm or association up to the date of dissolution shall be assessed as if no such dissolution has taken place;
   • (b) every person, who was at the time of such dissolution, partner of such firm or member of such association, shall, notwithstanding such dissolution, be liable jointly and severally for the tax (including any interest, amount forfeited and penalty) due from the firm or the association and the interest due on such tax upto the date of payment thereof, whether such tax (including any interest, amount forfeited and penalty) has been assessed prior to or after such dissolution and subject as aforesaid, the provisions of this Act shall, so far as may be, apply as if every such partner or member were himself a dealer: Provided that, on dissolution of the firm or association any partner of the firm or as the case may be any member of the association shall intimate the date of dissolution within 60 days thereof to the Commissioner by a notice in writing in that behalf : Provided further that, if no such intimation is given within 60 days from the date of dissolution, the liability of every partner of the firm or as the case may be of every member of the association shall continue in respect of any business done by any partner or group of partners of the firm or any member or group of members of the association, after the date of dissolution until the date on which such intimation is received by the Commissioner: Provided also that, where the partner of a firm or member of association liable to pay such tax (including any interest, amount forfeited and penalty) dies then the provisions of sub-section (1) shall, so far as may be, apply: Provided also that, where a firm or association of persons is dissolved, a notice under this Act in respect of the liability of the firm or association to pay tax may be served on all the partners of the firm (not being a minor) or all the members of the governing body of the association, who had represented the firm or association, as the case may be, immediately before its dissolution, and on such service of notice it shall be deemed to be sufficient notice to all partners of the dissolved firm or all members of the dissolved association, as the case may be.
4. (4) Where a dealer, liable to pay tax under this Act, transfers or otherwise disposes of his business in whole or in part, by a sale, gift, lease, leave and licence, hire or in any other manner whatsoever, the dealer and the person to whom the business is so transferred, shall, jointly and severally, be liable to pay the tax (including any interest, amount forfeited and penalty) due from the dealer under this Act or under any earlier law upto the time of such transfer, and interest due on such tax upto the date of payment thereof, whether such tax (including any interest, amount forfeited and penalty) has been assessed before transfer but has remained unpaid, or is assessed thereafter : Provided that, that the dealer transfers his business, such dealer and the person to whom the business is so transferred, shall, within 60 days from the date of transfer, give intimation to that effect to the Commissioner by a notice in writing: Provided further that, if no such intimation is given within the aforesaid period by the transferor or the transferee, the transferor and the transferee shall be liable to pay tax on all the sales and purchases effected after the date of transfer till the date on which such intimation is received by the Commissioner, as if the business was conducted after the transfer by the transferor and the transferee jointly : Provided also that, when such intimation is not given within the aforesaid period of 60 days, any notice under this Act or the rules made thereunder issued to the transferor shall be deemed to be a notice issued to the transferee also and all the provisions of this Act shall, so far as may be, apply as if the transferor and the transferee were given due notice of the proceedings under this Act and no order passed shall be invalid merely on the ground that the transferee was not made a party to the said proceedings. Explanation.—For the purpose of this sub-section, where the business is transferred in whole or in part by lease, leave or licence or hire, and on termination or expiry of the period of such agreements, the business reverts to the lessor, licensor or hirer, then such lessor, licensor or hirer, as the case may be, shall be deemed to be the transferee of the business.
5. (5) Where the dealer, liable to pay tax under this Act—
   • (a) is the guardian of a ward on whose behalf the business is carried on by the guardian, or
   • (b) are trustees who carry on the business under a trust for a beneficiary, then, if the guardianship or trusteeship is terminated, the ward or, as the case may be, the beneficiary shall be liable to pay the tax (including any interest, amount forfeited and penalty) due from the dealer upto the time of the termination of the guardianship or trusteeship, and the interest due on such tax upto the date of payment thereof whether such tax (including any interest, amount forfeited and penalty) has been assessed before the termination of the guardianship or trusteeship but has remained unpaid, or is assessed thereafter.
6. (6) Where a dealer liable to pay tax under this Act, is succeeded in the business by any person in the manner described in clause (a) of sub-section (1) or becomes a transferee under the provisions of sub-section (4), then such person or transferee shall, notwithstanding anything contained in section 3, be liable to pay tax on the sales or purchases of goods made by him on or after the date of such succession or transfer and shall (unless he already holds a certificate of registration) within 60 days thereof apply for registration, and if he is already a Registered dealer, he shall apply within prescribed time for necessary amendment of his registration certificate : Provided that, where such person resells any goods purchased by the dealer while carrying on business before such succession or transfer, he shall be entitled to such deductions in respect thereof as are permissible under section 7, 8 or 10 as the case may be, had the resale been effected by the dealer himself.