Section 49(4) in The M.P. Vanijyik Kar Adhiniyam, 1994
(4)When a dealer is a firm or association of persons or a joint Hindu Family and such firm, association or family has discontinued business-(a)the tax payable under this Act by such firm, association or family for the period upto the date of such discontinuance may be assessed and determined as if no such discontinuance had taken place; and(b)every person who was at the time of such discontinuance a partner of such firm or a member of such association or family shall notwithstanding such discontinuance, be liable severally and jointly for the payment of the tax payable by such firm, association or family, whether such assessment is made prior to or after such discontinuance and, subject as aforesaid the provisions of this Act shall apply as if every such person or partner were himself a dealer:Provided that when it is found that a change has occurred in the constitution of the firm or association or that such firm or association has transferred its business and the tax payable by a partner or member as aforesaid cannot be recovered from him, it may be recovered from the firm or association as reconstituted or from the transferee :Provided further that where a tax is recovered from the firm or association or transferee as aforesaid such firm or association or transferee shall be entitled to recover the same from the partner or member who was originally liable to pay tax.Explanation. - The dissolution or reconstitution of a firm or association of persons or partition of Joint Hindu Family shall be deemed to be discontinuance of business within the meaning of this sub-section.
