2010 (10) TMI 1192

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....titions were disposed of with certain observations, but without granting the relief as the one sought by the petitioners in the writ petitions and hence these writ appeals. 3. The three appellants common to each of these appeals were the directors of a private limited company known as 'Kurians Ink and Chemicals (P) Limited'. The said company was a registered dealer within the meaning of the said expression as defined under the Kerala General Sales Tax Act, 1963. The further details of the business of the company may not be necessary for the purpose of this order except to state that for the assessment years 1990-91, 1991-92 and 1992-93, the company came to be assessed under the provisions of the abovementioned Act and was found l....

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....by virtue of the operation of the Companies Act, the liability of the shareholders and also the directors is limited and the tax liability of the company cannot be passed on to the shareholders or the directors as it is well established that a company duly incorporated under the provisions of the Companies Act has a distinct legal entity which is capable of acquiring rights and incurring obligations on its own. 8. However, a learned Judge of this Court by the judgment under appeal rejected the challenge on the ground that the petitioners/appellants herein are the exclusive beneficiaries of the business of the company. The learned Judge sought to support such a conclusion on the basis of two decisions of the Supreme Court reported in Comm....