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2013 (5) TMI 620 - HC - VAT and Sales TaxLiability of sales/trade tax dues - Recovery certificate against the petitioner, Director in the Private Limited Company, for the dues of the Company which has been wound up by the order passed by the Delhi High Court - proprietorship concern was converted into Private Limited Company - application under Section 4-A(2-B) of the U.P. Trade Tax Act for claiming exemption from payment of trade/sales tax for remaining period rejected - Held that:- Here appears to be no pleading of fraud in the counter affidavit. So far the dues under the U.P. Trade Tax/Sales Tax are concerned, in the absence of proper pleading, it is not appropriate to examine the plea of fraud. Contention of the petitioner that the outstanding trade tax dues/sales tax of the Private Limited Company cannot be recovered personally from the petitioner is well founded in view of decision in M/s Meekin Transmission Ltd. (2008 (2) TMI 406 - ALLAHABAD HIGH COURT). Thus for the assessment years 1990-91, 1991-92 and 1992-93, the trade tax/sales tax dues under the U.P. Trade Tax Act/Sales Tax Act cannot be recovered from the personal assets of the petitioner. Recovery of CST - A bare perusal of the Section 18 it can be concluded that the liability of the petitioner to pay central sales tax dues of the Private Limited Company is on him as a director of Private Limited Company in Liquidation is jointly and severally liable to pay central sales dues of a Company in Liquidation. To this extent, his plea that he is not liable to pay outstanding central sales tax of the company has got no force and the same is hereby, rejected.
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