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TMI Blog2007 (1) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - K. RAVIRAJA PANDIAN, J. Ms. G. Sumithra for the Petitioner. A. Shanmugasundaram for the Respondent. JUDGMENT 1. The petitioners have put in issue the distraint proceedings initiated by the respondent, the Commercial Tax Officer to recover a sum of Rs. 31,03,345 towards arrears of sales tax for the assessment years from 1991-92 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nadu General Sales Tax Act proceedings can be initiated against the persons who asserted themselves as association of persons. 3. Heard learned counsel on either side and perused the materials available on record and went through the relevant provisions in the statute. 4. On hearing counsel on either side, I am afraid, the argument advanced on behalf of the respondent by the learned Government advocate can be accepted. 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 provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue to proceed against a director of a company, personally for the arrears of sales tax dues from the company, which is a distinct and different legal entity, but if it is shown or substantiated that the director has got the properties of the company, the Revenue would not be prevented from proceeding against him. In the case of Punalur Paper Mills Ltd. v. District Collector, Quilon [1985] 60 STC 193, the Kerala High Court held that in the absence of a specific provision in the Kerala General Sales Tax Act, fastening liability on the director or the managing director of a company for the tax due by the company, no proceedings can be initiated against the director or the managing director for recovery of such dues. In Nishad P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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