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2017 (10) TMI 113 - HC - VAT and Sales TaxRecovery of tax arrears - company in liquidation - whether the respondent can proceed against erstwhile Director of a Public Limited Company for recovery of tax payable by the Company? - Held that: - the proceedings against the company for recovery of the arrears can be done in accordance with law - Section 19 A of the TNGST Act cannot be taken assistance of the respondent for sustaining the order, which provides for the liability to tax of a partitioned Hindu family or dissolved firm. It is further pointed out that Section 19B of the TNGST Act, which provides for liability to tax of a Private Company, on winding up as in the said case, cannot be invoked, as the defaulter was a public limited company. It has clearly stipulated that as against the petitioner who was the erstwhile director of public limited company, proceeding under Section 19B which has been invoked by the respondent for issuing impugned recovery notice, could not have been invoked against the petitioner - recovery notice issued against the respondent invoking Section 19B of the Act, is without jurisdiction - petition allowed. Recovery from petitioner in his individual capacity - Held that: - the impugned assessment orders cannot be given effect to, against the petitioner nor any recovery can be made from him. The petitioner is not required to challenge the impugned assessment orders, as admittedly the defaulting assessee is a Public Limited Company M/s.Union Motors Service Limited - it is made clear that the respondent can proceed against the defaulting company and it is reported that the Company has now been wound up, the respondent is given liberty to file an appropriate claim petition before the Official Liquidator who has been appointed as a provisional liquidator for winding up the said company - petition closed. Petition allowed - decided in favor of petitioner.
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