Section 18 - Liability of directors of private company in liquidation - Central Sales Tax Act, 1956

Liability of directors of private company in liquidation. 18. Notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), when any private company is wound up after the commencement of this Act, and any tax assessed on the company under this Act for any period, whether before or in the course of or after its liquidation, cannot be recovered, then, every person who was a director of the private company at any time during the period for which the tax is due shall be jointly and severally liable for the payment of such tax unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company. -------------------------- Notes:- 1. Inserted vide Act 61 of 1973, w.e.f. 1.4.1973.