The Kerala High Court, recently ruled that the provisions of section 18A of the Kerala Value Added Tax ( KVAT ) Act, 2003 which deals with the special provisions for registration and continuance of business by the legal representatives of the deceased dealer can be extended to a partnership firm.
The deceased, one Mr. P.M.Varghese was a registered dealer under the KVAT Act. On the death of the dealer, his son and wife formed a partnership and applied for transfer of registration of the deceased dealer in favour of the partnership under section 18A of the KVAT Act. However, the authority rejected the application by holding that the benefit of Section 18A of the Act cannot be extended to a partnership.
While allowing a writ petition filed by the petitioners, Justice P B Suresh Kumar found the view taken by the competent authority unsustainable.
“It is beyond dispute that the partnership formed by the petitioners is claiming the benefits available to “the legal heir who continues the business” as contained in subsection (1) of Section 18A of the Act,” the Court said.
The Court found that the expression “the legal heir who continues the business” used in this section shall also include a partnership consisting solely of the legal heirs of the deceased dealer as partners.
“The competent authority has no case that Ext.P4 partnership is not a partnership consisting solely of the legal heirs of the deceased dealer. The case of the petitioners is, therefore, covered by the said explanation.”
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