https://www.taxtmi.com/caselaws?id=305332 Arrears of sales tax due from a private company in liquidation could be recovered from its directors only through the statutory mechanism in section 16B of the Andhra Pradesh General Sales Tax Act, 1957. The provision makes directors jointly and severally liable where company tax cannot be recovered, but also allows a director to avoid liability by showing that non-recovery was not due to gross neglect, misfeasance or breach of duty on his part. A demand raised against the directors without following that framework was not sustainable, and the recovery action was quashed. en-us Mon, 03 Apr 1989 00:00:00 +0530 Tue, 29 Nov 2022 17:27:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=305332 Arrears of sales tax due from a private company in liquidation could be recovered from its directors only through the statutory mechanism in section 16B of the Andhra Pradesh General Sales Tax Act, 1957. The provision makes directors jointly and severally liable where company tax cannot be recovered, but also allows a director to avoid liability by showing that non-recovery was not due to gross neglect, misfeasance or breach of duty on his part. A demand raised against the directors without following that framework was not sustainable, and the recovery action was quashed. Case-Laws VAT and Sales Tax Mon, 03 Apr 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=305332