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2011 (7) TMI 1078 - HC - VAT and Sales TaxAuctioning the personal property of the petitioner for satisfying the recovery of the sales tax dues relating to M/s. Mahesh Niranjan Jute Pvt. Ltd., a company incorporated and registered under the Companies Act, 1956 Held that:- In the present case, the person who is to be taxed is a dealer and the company in question is registered as a dealer with the Sales Tax Department and therefore any tax, keeping in view the taxing statute, has to be recovered from director of the company. There is no such provision under the M. P. Sales Tax Act which empowers the respondents to recover the outstanding dues of sales tax from the personal property of the director and in absence of any specific statutory provision, the petitioner cannot be held to be a person liable to pay the tax and therefore the proclamation of sale in respect of the property belonging to the petitioner has to pave the path of extinction. The impugned proclamation dated August 2, 2005, panchnama dated August 29, 2005 and the consequential orders are set aside. It is pertinent to note that the property in question was sold by the petitioner during the pendency of the present writ petition and vide order dated April 7, 2011 the sale proceeds in the form of FDR have been deposited with the principal registrar of this court. Resultantly, as this court has allowed the writ petition the principal registrar of this court is directed to release the FDR in question.Writ petition is allowed
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