https://www.taxtmi.com/caselaws?id=164637 Sales tax arrears due from a dealer were treated as a State debt and therefore as a debt within the Insolvency Act, so insolvency proceedings seeking protection on that basis were maintainable. Protection under section 31 was confined to arrest by civil court and detention in civil prison, and did not extend to criminal prosecution or punishment for statutory offences. As the record disclosed turnover suppression, penalty proceedings, possible prosecution, and serious factual gaps including no proper disclosure of other debts or assets, no sufficient cause was shown for protection. The challenge to refusal of protection therefore failed and the petitions were dismissed. en-us Mon, 24 Aug 2009 00:00:00 +0530 Sun, 02 Nov 2014 20:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164637 Sales tax arrears due from a dealer were treated as a State debt and therefore as a debt within the Insolvency Act, so insolvency proceedings seeking protection on that basis were maintainable. Protection under section 31 was confined to arrest by civil court and detention in civil prison, and did not extend to criminal prosecution or punishment for statutory offences. As the record disclosed turnover suppression, penalty proceedings, possible prosecution, and serious factual gaps including no proper disclosure of other debts or assets, no sufficient cause was shown for protection. The challenge to refusal of protection therefore failed and the petitions were dismissed. Case-Laws VAT and Sales Tax Mon, 24 Aug 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164637