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2017 (8) TMI 626 - HC - VAT and Sales TaxRecovery of Sales Tax Arrears - whether arrears of sales tax can be demanded from a person who has resigned from the post of Director long before such recovery proceedings were initiated? - section 19-B - Held that: - section 19-B will apply only if a company had been wound up and to the directors who hold the said status at the time of winding up of the company - said section cannot be invoked here. As regards section 18 of the Central Sales Tax Act, even if any private company is wound up after the Act, the person who was a director, during the period for which the tax is due, is also jointly and severally liable to pay the amount. But since the company in question is not in liquidation or is not yet wound up, the impugned proceedings taken against the petitioner cannot be sustained. The fact that the petitioner had resigned from the Directorship of Entel Limited on 08.12.1998 and the same was accepted by the Board of Directors of Entel Limited on 22.12.1998 has not been disputed by the 1st respondent, as it has been admitted by him in the written instructions to the learned Additional Government Pleader - demand not sustainable - petition allowed - decided in favor of petitioner.
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