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2018 (7) TMI 905 - HC - VAT and Sales TaxLiability to pay certain sums on the petitioners in their capacity as Directors - proceedings by virtue of sub-section (6) of Section 44 of the Maharashtra Value Added Tax Act, 2002 on Directors - proper opportunity not given to Directors to show cause. Held that:- In the event the petitioners show cause, then an opportunity of personal hearing will be afforded to the petitioners and a reasoned order will follow thereafter. At such an opportunity of personal hearing, the petitioners can prove that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on their part, in addition to urging that given the scheme of the Companies Act, 2013 and sub-section (6) being subject thereto, there is a distinct personality in law. The existence of a Director and the company is independent of each other. Unlike a partnership firm, the company does not cease to exist merely because persons like the petitioners are not associated with it. Thus, all contentions can be raised at such an opportunity of personal hearing. We are relieved of the obligation to express any opinion on the rival contentions. Keeping the jurisdictional as also other points on merits open for being urged at an appropriate stage in the proceedings which may be initiated pursuant to a show cause notice, we dispose of the writ petition.
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