Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2022 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (11) TMI 1271 - HC - VAT and Sales TaxRecovery of arrears of tax due from a private limited companyfrom the Directors of the company - Section 27 of the Andhra Pradesh Revenue Recovery Act, 1864 - HELD THAT:- This Court had categorically held that tax due from a private limited company under the APGST Act can be recovered from the Directors of the company, only in terms of Section 16-B of the Act, i.e. when the company is in liquidation and not other wise. The stand of the respondent that since the 3rd respondent has been amalgamated with the 4th respondent, the same is to be deemed to be under winding up, does not appeal this Court for acceptance for the reasons that the amalgamation is undertaken, under Section 397 of the Companies Act, 1956, whereunder there would be transfer of assets and liabilities of the company being taken over by the other company with which it is being amalgamated and thus, it cannot be considered as deemed to be wound up. The procedure for winding up of a company is prescribed under Part II of Chapter XX of the Companies Act, and operates in a different field and cannot be considered same as in the case of amalgamation. In the light of the settled position of law as enunciated by this Court in MADDI SWARNA VERSUS COMMERCIAL TAX OFFICER, CHILAKALURIPET AND ANOTHER [2001 (6) TMI 795 - ANDHRA PRADESH HIGH COURT], this Court is of the view that the action of the 1st respondent in issuing the impugned notice of attachment in Form 5 dt.22.08.2007 under section 27 of the Act of 1864, cannot be countenanced. Petition allowed.
|