Company tax dues cannot be recovered from a director's personal assets absent statutory liability and liquidation conditions.

Tax dues of a company cannot be enforced against a director's personal assets unless the statute expressly permits such recovery. Section 38 of the U.P. Value Added Tax Act, 2008 applies only where a limited company is wound up and tax remains unrecovered; in that situation, director liability may arise subject to statutory conditions. As the company was not in liquidation, the provision had no application and the company's separate juristic personality protected the director from personal recovery. The recovery citation was therefore set aside only to the extent it sought enforcement against the petitioner's personal assets, while proceedings against the company remained undisturbed.

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Issues: Whether tax dues of a company could be recovered from the personal assets of a director when the company was not in liquidation and the recovery citation was issued in the company's name but was sought to be enforced against the director personally.

Analysis: Section 2(h) of the U.P. Value Added Tax Act, 2008 includes a company within the definition of dealer. Section 38 applies only where a limited company is wound up and tax due from it cannot be recovered; in that event, a director may be made jointly and severally liable subject to the statutory conditions. As the company was not in liquidation, Section 38 had no application. The company had a separate juristic personality, and there was no basis to proceed against the petitioner's personal assets for the company's tax dues.

Conclusion: The recovery citation could not be enforced against the personal assets of the petitioner and was set aside to that extent.

Final Conclusion: The petition succeeded only insofar as personal recovery against the petitioner was concerned, while the recovery proceedings against the company were left undisturbed.

Ratio Decidendi: Tax dues of a company cannot be recovered from a director's personal assets unless the statute expressly so provides, and a provision creating director liability on winding up cannot be invoked when the company is not in liquidation.

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