2025 (3) TMI 493

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....ent Pleader Mr. Raj Tanna for the Respondents. 2. Rule returnable forthwith. Learned Assistant Government Pleader Mr. Raj Tanna waives service of notice of rule on behalf of the Respondents. With the consent of learned advocates for the respective parties, the matter is taken up for final hearing, as the issue involved is very short. 3. The Petition is filed under Article 226 of the Constitution of India with the following prayers :- "(A) YOUR LORDSHIP be pleased to allow this petition and be pleased to issue a writ of certiorari or any other writ, order or direction and be pleased to quash and set aside the attachment orders dated 09.01.2013, 17.02.2014, as annexed at Annexure A to the petition as well as be further pleased ....

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.... the Company's directors, including those of the Petitioner. 4.4 The Petitioner was under the impression that the above attachment orders were valid only for a duration of one year. However, the Respondent No. 2 has issued another property attachment order dated 01.05.2015 bearing No. Va.Ve.1/Gh-2/Bhav/ Milkat Tanch/2015-16/J under Section 46 of the Gujarat Value Added Tax, 2003 read with Section 154 of the Bombay Land Revenue Code. 4.5 The Petitioner was under the impression that the attachment had been lifted after the expiration of one year, as the Petitioner had not been served with the order dated 01.05.2015 or any subsequent assessment orders pertaining to the Company. Consequently, the Petitioner proceeded to sell Property ....

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.... of Gujarat passed in Special Civil Application 243 of 1991 with Special Civil Application No. 7578 of 1991 vide order dated 17.06.2004 (2) Different Solution Marketing (P.) Ltd. Vs. Assistant Commissioner of Commercial Taxes reported in 2016 SCC Online Guj. 10274 (3) Manharlal Hirjibhai Virdiya Vs. Assistant Commissioner of Commercial Tax reported in 2021 SCC Online Guj. 1603. 6. Per contra Mr. Raj Tanna, learned Assistant Government Pleader appearing for the respondents submitted that Mahakali Cotton Pvt. Ltd. of which the petitioner was a Director, had not preferred any appeal against the said attachment orders and therefore, Mahakali Cotton Pvt. Ltd. was assesseed and the provisional attachment order was passed and eventually permane....

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....78 is misconceived. The section specifically deals with offences by companies and the criminal liability is fastened on the Directors who were in charge of and were responsible for the conduct of the business of the Company, but does not at all provide for any personal liability of the Directors to pay the sales-tax dues of the Company nor does it empower the authorities to proceed against the personal properties of the Directors. The very fact that the same Legislature has in the same Act provided for criminal liability of the Directors without providing for any personal liability of the Directors or their personal properties for payment of sales-tax dues of the Company in question, the provisions of Section 78 lend support to the case of ....