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2016 (10) TMI 260 - HC - VAT and Sales TaxPrinciple of 'lifting of the corporate veil' - recovery of duty - discharge of duties and functions as a Director of the Company - management of affairs of the company - whether the recovery of duty from the revisionist justified on the strength of the principles of lifting of corporate veil and after going through the facts and circumstances of the case? - Held that: - the said doctrine is liable to be invoked in a case where it is found that the corporate personality or structure itself is used as a camouflage or a vehicle to evade payment of tax and perpetrate fraud upon the revenue. It is only an allegation that, the revisionist had failed to faithfully and dutifully discharge his duties and functions as a Director and that his conduct of the business of the Company was irresponsible. He had failed to obtain requisite forms as a result of which the dues of the company continued to mount. - This does not in the opinion of this Court satisfy the test of fraudulent conduct, so as to attract the principle of lifting of corporate veil While no recoveries for the dues of the assessee can be executed against the revisionist, it shall be open to the department to move against the assets, moveable or immoveable, of the assessee in accordance with law - revision allowed - decided in favor of revisionist.
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