TaxTMI 
TaxTMI 
1996 (10) TMI 464
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...., Industrial Area, Jodhpur; (2) to hold that the petitioner is not liable to be prosecuted under section 16(3)(h), Rajasthan Sales Tax Act, 1954 (in short, "the Act") and to quash the notice dated September 13, 1990, annexure 8; (3) the respondent be restrained from recovering from the petitioner the amounts of tax, interest and penalty outstanding against M/s. Ratanada Chemicals Ltd., Industrial Area, Jodhpur (respondent No. 3); (4) to declare the provisions of section 9-D of the Act as ultra vires of the Constitution of India; and (5) to quash the circular dated October 24, 1989 regarding personal liability of directors, annexure 9, issued by Commissioner, Commercial Taxes, Jaipur. 2.. The petitioner's case is that he was one of the ....
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.... interest and penalty. 4.. The learned counsel for the petitioner contended that the provisions of section 9D of the Act were inconsistent with the provisions of the Companies Act, 1956, Companies Act, being Central Act, will prevail and not the provisions of section 9D of the Act and, therefore, they deserved to be declared as unconstitutional. He further contended that the respondent-company was always a public limited company, the provisions of section 9D were not applicable to it and as such these provisions could not be invoked against the petitioner for effecting the recovery of the amounts of tax, interest and penalty outstanding against the respondent-company. 5.. In reply, it has been contended by the learned counsel for the depa....
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....d question for consideration is about the validity of section 9D of the Act and the legality of the circular, annexure 9. In view of the aforesaid findings, it is not necessary to decide the validity of section 9D of the Act and legality of the circular, annexure 9, in this case. 8.. The third question for consideration is about the validity of the notice dated September 13, 1990, annexure 8. The notice, annexure 8, states that the petitioner did not deposit the outstanding amounts of tax and interest despite granting several opportunities. He has also been asked by it to show cause as to why he should not be prosecuted under section 16(3)(h) of the Act. Clause (h) of sub-section (3) of section 16 ran as under: "(h) If any person wilfully....