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2016 (7) TMI 774 - HC - VAT and Sales TaxAttachment of personal property of the employee / nominal director of the company - recovery of dues - GVAT - With persuation of Mr.Sunil Kakkad, had agreed to become nominal director of the company in the year 2007. However, it is the case of the petitioner at no point of time, the petitioner had any share holding in the company nor even was drawing salary from the company. The petitioner had also stated that he was not even in charge of day to day affairs of the company. As per the say of the petitioner he ceased to be Director of the company with effect from 8.7.2011 and necessary formalities of filling up form no.32 before ROC had also been completed. Held that:- it emerges that under the provisions of the VAT Act, personal property of the director is not permissible to be attached. In view of section 10(2) of the VAT Act, a director of the company is not to be presumed as a dealer who can be proceeded with by the authority. Resignation has also been reflected in form no.32 which would indicate that the petitioner has remained no longer as a director of the company and cannot be held responsible and therefore, could not be proceeded with by way of attachment of property. It emerges that the challenge in the petition appears to be just and proper. No material is brought on record to permit lifting of corporate veil. In fact no such case has been put forth before us by the respondents. The petitioner's personal property could not have been attached by the impugned order.
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