9911796707
TMI Blog2007 (1) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... panies Act, 1956, under the certificate No. 12819 of 1986, amended on 13-11-1987. The company and its factory have been taken possession by the Tamil Nadu Industrial Investment Corporation under section 29 of the State Financial Corporations Act, 1951 and the company is no more in existence. Further, the petitioners have also resigned from the directorship on and from 18-6-1996 and 23-5-1996, respectively and to that effect resolution has been passed by the directors of the company. As such from that dates the petitioners ceased to be the directors of the company. All of a sudden, proceedings under section 8 of the Revenue Recovery Act has been issued against the petitioners. There is absolutely no provision whatsoever in the Tamil Nadu Gen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to tax private company on winding up, cannot be invoked. 5. In this regard, useful reference can be had to the decisions of various High Courts, which are as follows : In the case of Desiraju Venkatakrishna Sarma, In re [1955] 25 Comp. Cas. 32, the Andhra Pradesh High Court has, in similar circumstance, held that a company is a body corporate and can be made liable for payment of taxes in respect of taxes payable by it. There is no personal obligation on the shareholders or the directors of a limited company in respect of the debts, or the taxes, revenue, etc., due from the company. The managing director or other directors of a limited liability company cannot be proceeded against as regards recovery of arrears of sales tax payable by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directors, and as such no proceedings can be taken against the directors of a company for recovery of any amounts whatsoever due from the company. The directors cannot be made personally liable to pay arrears of sales tax due from the company under the Kerala General Sales Tax Act, 1963. In Subash Chandra Kankaria v. State of Rajasthan [1999] 114 STC 413, the Jodhpur Bench of the Rajasthan Taxation Tribunal held the provisions of section 9D of the Rajasthan Sales Tax Act, 1954, cannot be invoked against a director of a public company for effecting the recovery of the amount of tax, interest and penalty outstanding against the company. 6. For the reasons stated in the foregoing paragraphs, and in the light of the decisions referred to abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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