2001 (12) TMI 887

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....ing the changes in the Directorships of the Company. It is the case of the petitioner that he had no connection whatsoever with the said Company after his resignation. In or about November, 1995 the petitioner received a notice from the first respondent alleging that a sales tax of Rs. 3,09,165 was due from the Company towards the Tamil Nadu General Sales Tax and the Central Sales Tax for the year 1981-82. Since the petitioner had nothing to do with the Company, he did not reply for the same. Now, the petitioner received the impugned notice dated 31.10.2001 from the first respondent to recover the said amount under the Revenue Recovery Act. So the petitioner has filed the above writ petition challenging the jurisdiction of the respondent....

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....her amount payable under this Act by such company whether assessment is made prior to or after such winding up unless he proves that the non-payment of lax cannot be attributed to any gross neglect misfeasance or breach of duty on his part in relation to the affairs of the company." Even the said provision will apply only if a Company had wound up and to the directors who hold the said status at the time of winding up of the company. That is not the case here. So Section 19-B does not empower the authorities to take recovery proceedings against the petitioner. Section 19-A of the Act will apply regarding the liability of the partitioned Hindu family, dissolved firm etc. The said provision also cannot be made applicable to the petition....

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....ld as follows; "6. On the other hand, the learned Special Government Pleader for Taxes meekly attempt to support the impugned action. Section 16-B of the APGST Act reads: "Liability of directors or a private company in liquidation.- When any private company is wound up and any tax assessed on the company under this Act for any period, whether before or in the course of or after its liquidation, cannot be recovered, then every person who was a director of the private company at any time during the period for which the tax is due, shall be jointly and severally liable for the payment, of such tax, unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty....