3K. Special provision regarding liability in certain cases.
(1)Where a proprietor or person liable to pay tax under this Act, dies, then-(a)if the activity of providing entertainment carried on by the proprietor or person is continued after his death by his legal representative or any other person, such legal representative or other person shall be liable to pay the tax including any penalty due from such proprietor or person under this Act in the like manner and to the same extent as the deceased proprietor or person;(b)if the activity of providing entertainment carried on by the proprietor or person is discontinued, whether before or after his death, his legal representative shall be liable to pay out of the estate of the deceased, in the like manner and to the same extent as the deceased proprietor or person would have been liable to pay if he had not died, the tax including any penalty due from such proprietor or such person under this Act, whether such tax including any penalty has been assessed before his death but has remained unpaid or is assessed after his death.Explanation. - For the purpose of this sub-section, the expression "legal representative" has the meaning assigned to it in clause (11) of section 2 of the Code of Civil Procedure, 1908 (Central Act 5 of 1908).(2)Where a proprietor or a person liable to pay tax under this Act is a Hindu undivided family and the joint property is partitioned amongst the various members or group of members, then, each member or group of members shall be jointly and severally liable to pay the tax including any penalty/interest due from the proprietor or the person, under this Act, upto the time of partition whether such tax including any penalty/interest has been assessed before partition but has remained unpaid or is assessed after partition.(3)Where a proprietor or person liable to pay tax under this Act is a firm and the firm is dissolved, then every person who was a partner shall be jointly and severally liable to pay to the extent to which he is liable under section 3J, the tax including any penalty/interest due from the firm under this Act up to the time of dissolution, whether such tax including any penalty/interest has been assessed before such dissolution but has remained unpaid or is assessed after dissolution.(4)Where a proprietor or person, 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, then, the proprietor or person and the person succeeding shall jointly and severally be liable to pay the tax including any penalty/interest due from the proprietor or person under this Act up to the time of such transfer, disposal or change, whether such tax including any penalty/interest has been assessed before such transfer, disposal or change but has remained unpaid or is assessed thereafter.(5)Where a proprietor or a person liable to pay tax under this Act,-(a)is the guardian of a ward on whose behalf the business is carried on by the guardian; or(b)is a trustee who carries on the business under a trust for a beneficiary, then, if the guardianship or trust is terminated, the ward or, as the case may be, the beneficiary, shall be liable to pay the tax including any penalty/interest due from the proprietor or person, upto the time of termination of the guardianship or trust, whether such tax including any penalty/interest has been assessed before the termination of the guardianship or trust, but has remained unpaid, or is assessed thereafter.(6)Where a proprietor or person liable to pay the 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, unless he already holds a certificate of registration, shall, within 30 days thereof, apply for registration.
