1998 (9) TMI 647

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....apoor, petitioner in Civil Writ Petitions Nos. 6795 and 6797 of 1998, was one of the directors in M/s. Aruna Day Rubber Industries Pvt. Ltd., Sonepat, and also in M/s. Organo Rubber Pvt. Ltd., Sonepat. Similarly, Ashok Kapoor, petitioner in Civil Writ Petition No. 6796 of 1998, was one of the directors in M/s. ElastoChem Pvt. Ltd., Sonepat. All the three aforesaid companies carried on business at M-3, Industrial Area, Sonepat. Ex parte assessments under the Haryana General Sales Tax Act, 1973 and the Central Sales Tax Act, 1956, were framed by the Excise and Taxation Officercum-Assessing Authority, Sonepat and demand of sales tax was created. The amount of sales tax was sought to be recovered as arrears of land revenue from the petitioners ....

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....ryana General Sales Tax Act creating a bar against the recovery of dues from a director of a private limited company. Further, even if arrears of tax are not recoverable under the Haryana General Sales Tax Act, these are recoverable under the Land Revenue Act as the arrears of land revenue. Since there are no movable or immovable assets of the company free from encumbrances from which tax may be recovered, the arrears of tax could be recovered from the directors. 6.. The objection taken by the respondents that the petitioners had an alternative remedy of appeal is found to have no substance inasmuch as they are not challenging the assessments made against the company, but they are disputing their personal liability in respect of the recove....