MVAT Act 21Chapter III · Liability in Special Cases

Section 21 · Liability to pay in case of death

(1)

Where a dealer, liable to pay tax under the Act, dies then:-

(a)

If the business carried on by 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 tax including any penalty, sum forfeited and interest due from such dealer under this Act or under any earlier law, in the like manner and to the same extent as the decreased dealer, and

(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 decreased, in the like manner and to the same extent as the decreased dealer would have been liable to pay if he had died, the tax including any penalty, sum forfeited and interest due from such dealer under this Act, or under any earlier law, whether such tax including any penalty, sum forfeited and interest has been assessed before his death but has remained unpaid, or is assessed after his death.

(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 members or group of members, then each member or group of members shall jointly and severally liable to pay the tax including and penalty, sum forfeited and interest due from the dealer under this Act or under any earlier lay up to the time of the partition, whether such tax including and penalty sum forfeited and partition.

(3)

Where a dealer liable to pay tax under this Act, is a firm, and the firm is dissolved, and then every person who a partner shall be jointly and severally liable to pay to the extent to which he is liable under section 23, the tax including any penalty, sum forfeited and interest due from the firm under this Act or under any earlier law, up to the time of dissolution, whether such tax including any penalty, sum forfeited and interest has been assessed before such dissolution but has remained unpaid or is assessed after dissolution.

(4)

Where a dealer, liable to pay tax under this Act, transfers or otherwise disposes of his business in whole or in part or effects any change in the ownership thereof, in consequence of which he is succeeded in the business or part thereof by any other person, the dealer and the person succeeding shall jointly and severally be liable to pay the tax including any penalty, sum forfeited and interest due from the dealer under this Act or under any earlier law, up to the time's of such transfer, disposal or change, whether such tax including any penalties, sum forfeited and interest has been assessed before such transfer, disposal or change but has remain unpaid is assessed thereafter.

(5)

Where the dealer, liable to pay tax under this Act:- Is the guardian of a ward on whose behalf the business is carried out by the guardian or is trustee who carry on the business under a trust for the beneficiary, then, if the guardianship or the trust is terminated, the ward or, as the case may be, the beneficiary shall be liable to pay the tax including any penalty, sum forfeited and interest due from the dealer up to the time of the termination of the guardianship or trust whether such tax including any penalty, sum forfeited and interest has been assessed before the termination of the guardianship or trust, but has remain unpaid, or is assessed thereafter.

(6)

Where a dealer is 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 in sub-section (4) then such person shall be liable to pay tax on the sales or purchases of goods made by him on and after the date of succession add shall (unless he already holds a certificate of registration) within sixty days thereof apply for registration.

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