Former director's petition to quash tax assessment rejected; all directors jointly liable for tax debts.

The court dismissed the writ petition seeking to quash a tax assessment order demanding payment of arrears of sales tax and penalty from a former director of a defunct company. The court held that all directors, including the petitioner, were jointly and severally liable for tax debts under the Central Sales Tax Act, regardless of misfeasance or breach of duty, and upheld the tax officer's demand for payment.

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Issues:
1. Petition for issue of a writ of certiorari to quash tax assessment proceedings.
2. Liability of a director to pay arrears of sales tax and penalty under the Central Sales Tax Act.

Analysis:
1. The petitioner, a former director of a defunct company, sought a writ to quash a tax assessment order demanding payment of arrears of sales tax and penalty. The company ceased operations in 1968, incurring heavy losses, and the petitioner believed the active directors would handle the tax matters. However, after several years, the tax authorities initiated distraint proceedings, leading the petitioner to seek permission to pay the dues in installments. The government granted this request, but the tax officer issued a fresh demand for payment, prompting the petitioner's writ petition. The court considered whether the relief sought by the petitioner could be granted.

2. The tax officer contended that the petitioner, as an active director during the company's operation, was liable for the unpaid sales tax and penalty. The officer cited provisions of the Central Sales Tax Act, holding that directors are jointly and severally liable for tax debts unless they prove no gross neglect, misfeasance, or breach of duty on their part. The officer argued that since the petitioner was a director during the relevant period and the company's closure, he was liable for the outstanding tax and penalty. The court analyzed the Act's provisions and rejected the petitioner's argument that only in cases of misfeasance or breach of duty could a director be compelled to pay. It held that all directors, including the petitioner, were liable under the Act, dismissing the writ petition for lack of merit.

In conclusion, the court dismissed the writ petition, upholding the tax officer's demand for payment of arrears of sales tax and penalty from the petitioner, a former director of the defunct company.

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