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2007 (1) TMI 254 - HIGH COURT OF MADRASRecovery of sales tax arrears - due in respect of a company from its directors - Directors resigned from the directorship - Proceedings u/s 8 of the Revenue Recovery Act - Powers of u/s 19A - HELD THAT:- It is well-settled that a company is a legal entity by itself and it can sue or can be sued as a legal entity and any dues from the company has to be recovered only from the company and not from its directors. Section 19A of the Act cannot be taken assistance by the respondent for sustaining the order, which provides for the liability to tax of partitioned Hindu family, dissolved firm. Even section 19B of the Act, which provides for liability to tax private company on winding up, cannot be invoked. Thus, I am of the view that the impugned order is liable to be set aside and it is accordingly set aside. The writ petitions are allowed.
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