TMI Blog1998 (9) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... f the directors in M/s. Aruna Day Rubber Industries Pvt. Ltd., Sonepat, and also in M/s. Organo Rubber Pvt. Ltd., Sonepat. Similarly, Ashok Kapoor, petitioner in Civil Writ Petition No. 6796 of 1998, was one of the directors in M/s. ElastoChem Pvt. Ltd., Sonepat. All the three aforesaid companies carried on business at M-3, Industrial Area, Sonepat. Ex parte assessments under the Haryana General Sales Tax Act, 1973 and the Central Sales Tax Act, 1956, were framed by the Excise and Taxation Officercum-Assessing Authority, Sonepat and demand of sales tax was created. The amount of sales tax was sought to be recovered as arrears of land revenue from the petitioners personally on the ground that they were directors in the companies. 3.. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a director of a private limited company. Further, even if arrears of tax are not recoverable under the Haryana General Sales Tax Act, these are recoverable under the Land Revenue Act as the arrears of land revenue. Since there are no movable or immovable assets of the company free from encumbrances from which tax may be recovered, the arrears of tax could be recovered from the directors. 6.. The objection taken by the respondents that the petitioners had an alternative remedy of appeal is found to have no substance inasmuch as they are not challenging the assessments made against the company, but they are disputing their personal liability in respect of the recovery of tax payable by the company. 7.. There is no dispute about the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the company. This view was reiterated by this Court in Suneet Khurana v. Assistant Collector (1997) 10 PHT 495 (P H). 9.. We are inclined to take the same view as in the aforesaid two cases and we, therefore, hold that the recovery of arrears of sales tax from the petitioners cannot be made. 10.. In the result, the writ petitions are allowed and the respondents are directed to refrain from recovering the amount of sales tax from the petitioners. The respondents shall, however, be at liberty to proceed in accordance with law against the assets of the company or against any other person liable to pay sales tax for and on behalf of the company. No order as to costs. Writ petitions allowed. - - TaxTMI - TMITax - CST, VAT & Sales Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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