TMI Blog2016 (3) TMI 956X X X X Extracts X X X X X X X X Extracts X X X X ..... oner company is a separate and independent entity, the bank account of the petitioner company cannot be attached for the dues of the proprietorship concern, viz., M/s.Atchaya Enterprises. Therefore, the bank account of the petitioner company, which was attached by the respondents is liable to be raised and accordingly, the attachment in respect of the petitioner company stands raised. - Petition disposed of - W.P.No.6961 of 2016 and W.M.P.No.6178 of 2016 - - - Dated:- 4-3-2016 - Mr. JUSTICE M.DURAISWAMY, J. For The Petitioner : Mr.Hari Radhakrishnan For The Respondent : Mr.A.P.Srinivas Standing Counsel ORDER The petitioner has filed the above writ petition to issue a Writ of Mandamus to direct the respondents 1 to 3 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f other Finance Act. M/s.Atchaya Enterprises has filed an appeal against the order dated 25.02.2014. In the meanwhile, the respondent has issued a notice to the 5threspondent attaching the bank account of the petitioner company. The bank account of the petitioner company was attached on the ground that another entity has not paid the service tax as demanded in the order dated 25.02.2014. 3. Mr.Hari Radhakrishnan, learned counsel appearing for the petitioner submitted that the bank account of another entity cannot be attached for the dues of some other entity. In support of his contention, the learned counsel relied upon the following judgments:- (i) 2014(304) E.L.T. 360 (Del) [Freezair India (P) Ltd. v. Commissioner of Central Excise, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the other. Principle of independent corporate existence of a registered company is of great significance and cannot be ignored except in the case of statutory mandate or when the corporate veil is required to be pierced for exceptional and good reasons. These are extraordinary situations when the law goes behind the corporate personality and ignores the legal entity of justifiable, sound and adept reasons. (ii) 2005(187) ELT.178 (Guj) [ Rupali Dyeing Printing Mills v. Union of India] wherein, the Division Bench of Gujarath High Court held as follows:- 5.As can be seen from the impugned notice (Annexure A ), it is a notice of demand to defaulter. The learned counsel for the respondents has not been able to show from any mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rangoli Prints, and M/s Rangoli Prints are three different entities and the action of the respondent authorities in treating all the three as one and the same, is not tenable in law. 4. Mr.A.P.Srinivas, learned Standing counsel appearing for the respondents submitted that the petitioner company was incorporated only to circumvent the demand made by the respondents as against the proprietorship concern, viz., M/s.Atchaya Enterprises. Further, the Standing Counsel submitted that since the director of the petitioner company was the proprietor of M/s.Atchaya Enterprises, the respondents had no other option except to attach the bank account of the petitioner. 5. It is pertinent to note that the petitioner company was incorporated as a P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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