Assessment and recovery of Tax on transfer of business

Where the ownership of the business of a dealer liable to pay tax or other amount is transferred, any tax or other amount payable under this Act in respect of such business and remaining unpaid at the time of the transfer and any tax or other amount due upto the date of transfer through unassessed may, without prejudice to any action that may be taken for its recovery from the transferor, be recovered from the transferee as if he were the dealer liable to pay such tax or other amount : Provided that the recovery from the transferee of the arrears of taxes due for the period to the date of the transfer shall be limited to the value of the assets he obtained by transfer. (2) Notwithstanding anything contained in this Act, if it appears to the Commissioner during any current return period that any dealer is likely to change, sell, transfer, dispose of or otherwise part with any of his assets with a view to avoiding payment of any liability under the provisions of this Act, the net turnover of such dealer for the period from the expiry of the previous return period to the date when the Commissioner commences proceeding under this section shall be chargeable to tax in that period. (3) For the purpose of making an assessment under sub-section (2) the Commissioner may serve a notice upon such dealer requiring him to furnish within such period as may be specified in the notice, a return in the manner and form in which a return under section 15 is furnished. (4) The transferee shall, within ninety days of such transfer, apply for registration under section 9 and thereafter all the provisions of this Act shall apply to such transferee.