(1)When the ownership of the business of a Dealer liable to pay any tax or penalty, of any other amount under the provisions of this Act, is transferred the transferor and the transferee shall jointly and severally be liable to pay any tax or penalty or any other amount payable but remaining unpaid at the time of transfer, and for the purpose of recovery from the transferee, such transferee shall be deemed to be the Dealer liable to pay the tax or penalty or other amount under this Act.Explanation. - When a person carries on business in the same premises substantially in the same scheduled goods in succession to a dealer liable under this Act, it shall be presumed that there has been entire transfer of the business unless the contrary is proved.(2)[ When a firm liable to pay tax, interest or penalty is dissolved, the assessment of the tax, levy of interest and imposition of penalty shall be made as if no dissolution of the firm had taken place, and every person who was at the time of dissolution a partner of the firm and the legal representative of any such partner, who is deceased, shall be jointly and severally liable to pay the tax assessed or interest levied or penalty imposed.(3)When an Undivided Hindu Family liable to pay the tax, interest or penalty is partitioned, the assessment of the tax levy of interest and the imposition of penalty shall be made as if no partition of the family and taken place, and every person who was a member of the family before the partition shall be jointly and severally liable to pay the tax assessed or interest levied or penalty imposed.(4)Where a dealer dies, his executor, administrator or other legal representative shall be deemed to be the dealer for the purposes of this Act and the provisions of the Act shall apply to him in respect of the business of the said deceased dealer, provided that is respect of any tax assessed, or interest levied, or penalty imposed as payable by any such dealer or any tax, interest or penalty which have been payable by him under this Act, if he had not died, the executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hands.] [Substituted by Act No. Orissa 10 of 2005, dated 9.9.2005.].
