Partial transfer of business by registered dealer

(1) Where the ownership of a part, division or unit of the business of a registered dealer is transferred by sale, gift, bequest, inheritance or otherwise, or transferred by way of lease or licence, and if the transferee, lessee or licensee, as the case may be, carries on such business as a part of his existing business in some other name, he shall, for the purposes of this Act (except for the liabilities under this Act already discharged by the transferor) be deemed to be a dealer in default in the matter of payment of any tax, penalty or interest payable by or due from the transferor in respect of all the periods immediately preceding the date of such transfer in relation to such part, division or unit. (2) If the transferee, lessee or licensee is a registered dealer and carries on the business referred to in sub-section (1), he shall, by an application under section 26, get his certificate of registration duly amended. (3) If the transferee, lessee or licensee is not a dealer registered under this Act and if he carries on business from such part, division or unit he shall, notwithstanding anything contained in section 8 be liable to pay tax under this Act from the date of such transfer and be liable for registration under section 26.