Judgement

RAMASWAMI, J.:- The question of law involved in this appeal is whether the purchaser of business carried on by a dealer as defined in the Madras General Sales Tax Act, 1939 (Madras Act No. IX of 1939), hereinafter called the Act , can be made liable for arrears of sales-tax due from the dealer in respect of transactions of sale which took place before the transfer of the business under Rule 21-A of the Rules framed in exercise of the powers conferred on the State Government by Section 19 of the Act.

2. The respondent purchased, by a registered instrument dated October 5, 1966, the business carried on by one Purushottam Raju under the name-All India Trading Company. Purushottam Raju was the sole proprietor of the business and had been assessed to sales tax in respect of his turnover for the years 1948-49 and 1949-50. The assessee paid some amounts towards sales tax thus determined, but there remained some arrears of sales-tax i. e., Rs. 3836-4-0 for 1948-49 and Rs. 1218-1-9 for 1949-50. The Sales-tax authorities attempted to recover the arrears of tax from the respondent as the purchaser of the business. The respondent denied liability to pay sales-tax but his contention wa