TaxTMI 
TaxTMI 
1990 (7) TMI 324
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....venue under the provisions of the Punjab Land Revenue Act, 1887. The suit was filed by Amolak Ram Kapoor and M/s. Kapoor Hosiery and Textiles, Panipat, for the grant of permanent injunction restraining the State of Punjab, Excise and Taxation Officer and the Tahsildar-cumAssistant Collector, II Grade, Panipat, from realising the alleged sales tax arrears of the aforesaid Board from the plaintiffs alleging that they were not liable to pay the arrears of sales tax which were due from the aforesaid Board in their individual capacity. Along with the suit an application under order XXXIX, rules 1 and 2 read with section 151 of the Code of Civil Procedure, 1908, for the grant of ad interim injunction during pendency of the suit, was filed. The ar....
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.... 2(d) of this Act makes it abundantly clear that a co-operative society or a club or any association which sells or supplies goods to its members would be a dealer within the meaning of the said clause. Section 19 of this Act provides that no assessment and no order passed under this Act or the Rules made thereunder shall be called into question in any civil court. Reliance has been placed by the learned counsel for the petitioners on this provision to support his argument that the present suit was not maintainable. Further reliance has been placed on section 158 of the Punjab Land Revenue Act which also bars institution of suits challenging orders passed relating to recovery of arrears of land revenue. On going through these provisions I f....
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....scription from the members and others and to spend the funds. Rule 34 further provided the consequences of dissolution of the Board that after satisfying of debts and liability, if any, whatever property of the Board remained, the same was not to be distributed among the members of the association but were to be given to some other society or institution having the object similar to that of the Board. Thus, there being no provision either under the Societies Registration Act or under the Rules and Regulations or memorandum of association of the Board, fixing any liability on its members with respect to any amounts due from the Board to others, recovery of sales tax thus could not be effected personally from the members even though some of t....
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....him. The question of recovery of arrears of sales tax due from a company from the Managing Director was under consideration of this Court in Surinder Nath Khosla v. Excise and Taxation Commissioner [1964] 15 STC 838. It was held that an incorporated company is a juristic person, a separate entity distinct from any individual shareholder, and the business carried on by the company belonged to it in its juristic capacity, and not to its shareholders. The Managing Director, thus, could not be arrested for realisation of sales tax due under the East Punjab General Sales Tax Act, 1948, from the limited company. Since the Board was a society registered under the Societies Registration Act and as per rules and regulations it could acquire and sel....