2017 (10) TMI 113

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....01-2002 and the assessment orders under the provisions of the CST Act for the assessment years 1999-2000, 2000-2001 and 2001-2002. 2. The petitioner has filed the writ petition in W.P.No. 27754 of 2005 challenging the notice dated 06.08.2005, stating that according to Section 19 B of the TNGST Act, the Directors have to pay tax arrears of the company, even though the company is in liquidation. Therefore, the petitioner and six others were directed to pay the arrears of tax, failing which the petitioner was informed that action will be proceeded to recover the arrears under the Revenue Recovery Act and Section 26 of the TNGST Act 1959. 3. The legal issue as to whether the respondent can proceed against erstwhile Director of a Public Li....

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....of law and therefore, it is clear that further proceedings against the appellants therein for recovery of the tax due from the company has to be stayed. 5. Further, the Hon'ble Supreme Court clarified that the proceedings against the company for recovery of the arrears can be done in accordance with law. In the case of Chamundeeswari and P.R.Sridharan Vs. Commercial Tax Officer, Vellore reported in (2007) 6 VST 399 (Mad), the writ petition was filed challenging the distraint issued by the Commercial Tax officer for recovery of arrears of sales tax due from the petitioner therein who was a Director of a Public Limited Company and subsequently resigned from the Director post. The question arose as to whether under the provisions of TNG....

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....mited company, proceeding under Section 19B which has been invoked by the respondent for issuing impugned recovery notice, could not have been invoked against the petitioner. 7. Thus, for the above reasons, it is held that recovery notice issued against the respondent invoking Section 19B of the Act, is without jurisdiction. Accordingly, the Writ Petition No.27754 of 2005 is allowed and the impugned recovery notice is set aside as against the petitioner alone. 8. In so far as the writ petition Nos. 28180 to 28185 of 2005 are concerned the impugned assessment was under the provisions of the TNGST and CST Act. Admittedly, the assessee is Union Motors Service Limited. The petitioner has questioned the assessment orders, since, it had bee....