https://www.taxtmi.com/caselaws?id=793320 Section 24(5) of the Andhra Pradesh VAT Act permits recovery from directors of a private company in liquidation only if company dues cannot be recovered and the non-recovery is linked to the directors' gross neglect, misfeasance or breach of duty. The Court explained that impossibility of recovery from the company satisfies the first condition, regardless of why recovery failed, but the authorities must first disclose primary facts supporting personal fault before shifting the burden to the directors. Because the impugned notice and bank attachments did not set out any such foundation, the attachments were contrary to Section 24(5) and were set aside, leaving the authorities free to proceed afresh in accordance with law after hearing objections. en-us Mon, 08 Dec 2025 00:00:00 +0530 Sat, 13 Jun 2026 08:36:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793320 Section 24(5) of the Andhra Pradesh VAT Act permits recovery from directors of a private company in liquidation only if company dues cannot be recovered and the non-recovery is linked to the directors' gross neglect, misfeasance or breach of duty. The Court explained that impossibility of recovery from the company satisfies the first condition, regardless of why recovery failed, but the authorities must first disclose primary facts supporting personal fault before shifting the burden to the directors. Because the impugned notice and bank attachments did not set out any such foundation, the attachments were contrary to Section 24(5) and were set aside, leaving the authorities free to proceed afresh in accordance with law after hearing objections. Case-Laws VAT / Sales Tax Mon, 08 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793320