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2018 (12) TMI 1284 - HC - VAT and Sales TaxValidity of recovery proceedings - constitutional validity of provisions of Section 26C of the Kerala General Sales Tax Act, 1963 - validity of proceedings against the Director of a private limited company - Held that:- Section 26C specifically speaks of joint and several liability of every person who was a Director of a private limited company only if the tax or other amounts recoverable under the Act cannot be recovered for any reason from the private company - Hence the proceedings has to be taken first against the company and there should also be sufficient material to show that the recovering authorities were not able to recover the amounts from the assessee company. There is no such averments made by the Government in the counter affidavit also. Since Section 26C contains a specific clause that it would be subject to the Companies Act, if any statutory right or protection is available to the Director under the Companies Act contravention of the same could be taken as a defense against the recovery. Petition allowed - decided in favor of petitioner.
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