TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 1640
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Rs. 61,55,507/- towards Haryana General Sales Tax (for short 'HGST') and Central Sales Tax (for short 'CST'). 2. The petitioner was one of the Directors of a private limited company namely M/s Pataudigold Cement Private Limited. Said company was promoted by Mr. Parveen Kumar Garg in January' 1995 who was Managing Director. The petitioner was 20 years old and was a college-going student. He made investment on the advice of Mr. Parveen Kumar Garg. The company applied for eligibility certificate under Rule 28A for exemption from payment of sales tax. The company started commercial production on 03.08.1996. The respondent did not decide exemption application and it became impossible for the company to run business without exemption. The pro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e is no provision under HGST Act to recover liability of a private company from its Directors. In case of CST Act, liability of a private limited company can be recovered from its Directors if company is wound up. In the instant case, the company was not wound up at the time of issuing impugned notices, thus, Section 18 of CST Act was inapplicable. This Court by order dated 05.09.2005 permitted department to afford opportunity to petitioner before making an order under Section 18 of CST Act. The respondent never issued notice under Section 18 of CST Act. As per data available on the official website of Delhi High Court, winding up petition was filed against the company in 2005 which was disposed of vide order dated 13.09.2005. 4. Learned....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... In view of the said decisions, we stay the operation of the impugned notices seeking to recover the arrears of sales tax due from M/s Pataudi Gold Cement (P) Ltd., Jatauli, Haily Mandi, Gurgaon in respect of financial years 1996-97 to 1998-99. List for hearing on 18.5.2005. Copy of the order be given dasti on payment of usual charges." 7. The petitioner was Director of M/s Pataudigold Cement Private Limited against which Assessing Authority created liability under HGST Act, 1973 and CST Act, 1957. The liability included tax, interest and penalty. There is nothing on record disclosing that petitioner despite being 20 years old was managing affairs of the company. The petitioner has repeatedly averred that it wa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dated 13.09.2005. The said order is reproduced as below:- "After recording the prima facie view that the respondent company is indebted to the petitioner and is unable to pay the debt, on 25th May, 2005, this petition was admitted to hearing and the petitioner was directed to take steps for publication of citations in Statesman (English) and Jansatta (Hindi) for today. The OL attached to this court was also appointed as the provisional liquidator. As per the report filed by the OL, the possession of the registered office has been taken by the OL and no record was found lying therein. These citations have since been duly published in the newspapers. There is no opposition to this petition from any other quarter as well. It may be no....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rder, dated23.3.2005, is made absolute till the disposal of the writ petition. We, however, direct that till the disposal of the writ petition, the petitioner shall not part with or otherwise dispose of any of his fixed assets without the leave of the Court. It is also clarified that if the department proposes to afford an opportunity to the petitioner before making an order under Section 18 of the Central Sales Tax Act, 1956, it will be open to it to do so." 12. Neither notice was issued to petitioner nor order complying conditions of Section 18 was passed. As per above quoted Delhi High Court order, the company has been wound up. Status of assets of the company is not known. The official liquidator might have taken over possession of t....