https://www.taxtmi.com/caselaws?id=762637 The Gujarat HC allowed a petition challenging recovery proceedings against a deceased director's estate. The director had resigned in February 2013 and died in August 2017, but recovery proceedings were initiated in June 2018 after his death. The court held that recovery proceedings under VAT Act Section 53(3) and CST Act Section 18 require giving the director an opportunity to prove non-recovery wasn't due to gross negligence or breach of trust. Since the director was deceased when proceedings commenced, this opportunity couldn't be provided. The court also noted authorities failed to establish factual foundation for lifting the corporate veil to fasten personal liability on directors. Recovery proceedings and attachment orders were quashed. en-us Fri, 18 Oct 2024 00:00:00 +0530 Wed, 04 Dec 2024 17:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762637 The Gujarat HC allowed a petition challenging recovery proceedings against a deceased director's estate. The director had resigned in February 2013 and died in August 2017, but recovery proceedings were initiated in June 2018 after his death. The court held that recovery proceedings under VAT Act Section 53(3) and CST Act Section 18 require giving the director an opportunity to prove non-recovery wasn't due to gross negligence or breach of trust. Since the director was deceased when proceedings commenced, this opportunity couldn't be provided. The court also noted authorities failed to establish factual foundation for lifting the corporate veil to fasten personal liability on directors. Recovery proceedings and attachment orders were quashed. Case-Laws VAT / Sales Tax Fri, 18 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762637