27C. Partial transfer of business by a registered dealer.

(1) Where the ownership of a part, division or unit of the business of a registered dealer is transferred by sale, gift, bequest, inheritance or otherwise, or transferred by way of a lease or licence, and if the transferee, lessee or licensee, as the case may be, carries on such business as a part of his existing business or a new business in some other name, he shall, for the purposes of this Act (except for the liabilities under this Act already discharged by the transferor or lessor or licensor, as the case may be) be deemed to be a dealer in default in the matter of payment of any tax, penalty or interest payable by or due from the transferor or lessor or licensor, as the case may be, in respect of all the periods immediately preceding the date of such transfer in relation to such part, division or unit.

(2) If the transferee, lessee or licensee is a registered dealer and carries on the business referred to in sub-section (1), he shall, by an application under section 27, get his certificate of registration duly amended.

(3) If the transferee, lessee or licensee is not a dealer registered under this Act and if he carries on business from such part, division or unit, he shall, notwithstanding anything contained in section 10, section 11, or section 14, be liable to pay tax under this Act, and be liable for registration under section 24, from the date of such transfer.

(4) Where the transferee, lessee or licensee is deemed to be a dealer in default under sub-section (1) for any amount of tax, penalty or interest payable by, or due from, the transferor or lessor or licensor, as the case may be, such amount of tax, penalty or interest shall be recoverable from such transferee, lessee or licensee under section 55.