Ramesh Chand Vs State of H.P and others (Himachal Pradesh High Court)
The Himachal Pradesh High Court considered a writ petition challenging a recovery notice dated 09.09.2024 issued against the petitioner, who had earlier been a partner in M/s Biologics INC, a partnership firm. The petitioner contended that he had ceased to be a partner after reconstitution of the firm on 19.02.2025 and that the reconstituted partnership firm had already filed a statutory appeal against the demand before the competent authority. Pursuant to the Court’s earlier directions, the respondents placed office instructions on record and the Assistant Commissioner, State Taxes & Excise, Nahan, appeared before the Court.
The respondents stated that the firm had been registered under the H.P. VAT Act, 2005 and the CST Act, 1956, continued under the GST regime, and that assessment for 2015-16 to 2017-18 had been finalized on 01.09.2023, creating an additional demand of ₹43,94,410, of which ₹10,77,860 had already been recovered. The balance demand had been declared recoverable as arrears of land revenue under Section 75 of the H.P. Land Revenue Act, 1954, and recovery proceedings had been initiated. The respondents further submitted that, under Sections 25, 26 and 27 of the H.P. VAT Act, partners were jointly and severally liable for tax liabilities, interest, and penalty.
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