26. Special provision renting liability to pay tax in certain cases. - (1) Where a person who is or has been a dealer, liable to pay tax under this Act, dies, then,
(a)if the business carried on by the 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 the tax including any penalty due from such dealer under this Act or under any earner lay 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 deceased, to the extent to which the estate is capable of meeting the charge, the tax (including any penalty) due from such dealer under this Act or under any earlier law,whether such tax (deluding any penalty) 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 various members or groups of members then each member or group of members shall be jointly and severally liable to pay the lax (including any penalty) due from the dealer under this Act or under any earlier law upto the tune of the partition whether such tax (including any penalty) has been assessed before partition hut has remained unpaid or is assessed after partition.(3)Where a dealer, 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 25, the tax (including any penalty) due from the firm under this Act or under any earlier law, up to the time of dissolution, whether such tax (including any penalty) 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 his business in whole or in part, by sale, lease, leave or licence, hire or in any other manner whatsoever, the dealer and the person to them the business is transferred shall jointly and severally be liable to pay the tax (including any penalty) due from the dealer under this Act or under any earlier law upto the time of such transfer, whether such tax (including any penalty) has been assessed before such transfer, but has remained unpaid or is assessed thereafter.(5)Where the dealer 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) due from the dealer upto the time of the termination of the guardianship or trust, whether such tax (including any penalty) has been assessed before the termination of the guardianship or trust but has remained Unpaid or is assessed thereafter.(6)Where & person becomes liable to pay tax in the manner described in clause (a) of sub- section (1) or in sub-section (4), then, such person shall, notwithstanding anything contained in section 3, be liable to pay tax on the sales or purchases of goods made by him on and after the date of such succession or transfer and shall (unless he already holds a certificate of registration) within thirty days thereof apply for registration:Provided that, where such person resells any goods purchased by the dealer while carrying on business before such succession or transfer he shall be entitled to such deductions in respect thereof as are permissible under section 7, 8 or 10, as the case may be, had the resale been effected by the dealer-himself.Chapter-IIISales Tax Authorities and Tribunal
