Section 21 in The Jammu and Kashmir General Sales Tax Act, 1962
21. Liability in case of firms or associations discontinued, dissolved or transferred.
(1)Where any business, the turnover of which is liable to tax under this Act, carried on by a firm or any other association of persons has been discontinued or where a firm or other association is dissolved, the assessing authority shall make an assessment of the turnover of the firm or other association of persons as if no such discontinuance or dissolution has taken place.(2)All the persons who were at the time of such discontinuance or dissolution partners of the firm or members of the association, as the case may be, shall be jointly and severally liable for the amount of tax or penalty payable and all the provisions of this Act so far as may be, shall apply to such assessment or imposition of penalty or other sums.(3)When the ownership of the business of a dealer liable to pay the tax or penalty is entirely transferred, the transferor and the transferee shall jointly and severally be liable to pay any tax or penalty payable in aspect of such business and remaining unpaid at the time of transfer.
