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TMI Blog2013 (5) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... U.P. Trade Tax Act/Sales Tax Act cannot be recovered from the personal assets of the petitioner. Recovery of CST - A bare perusal of the Section 18 it can be concluded that the liability of the petitioner to pay central sales tax dues of the Private Limited Company is on him as a director of Private Limited Company in Liquidation is jointly and severally liable to pay central sales dues of a Company in Liquidation. To this extent, his plea that he is not liable to pay outstanding central sales tax of the company has got no force and the same is hereby, rejected. - Civil Misc. Writ Petition No. 158 of 2007 - - - Dated:- 10-5-2013 - Prakash Krishna And Manoj Kumar Gupta,JJ. JUDGMENT (Delivered by Prakash Krishna,J) By means of the present writ petition, the petitioner has challenged the recovery certificates issued by the Trade Tax Officer, Noida, Gautambuddh Nagar/respondent no. 4 all dated 28th November, 2006 for the assessment years 1990-91, 1991-92 and 1992-93 for a sum of ₹ 19,42,398/-, ₹ 22,97,089/- and ₹ 5,04,589/- respectively. The challenge to these recovery notices are on the allegations that earlier M/s Stejac Video Products was a pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me the Managing Director of the Company having 95% share in the Company. It was further stated that the successor Company had not followed the rules properly and no application under Section 4-A(2-B) of the Act was received in the Commissioner's office within the period of 60 days from the date of succession. In rejoinder affidavit, the stand taken in writ petition has been reiterated. Heard Sri Anurag Khanna, learned counsel for the petitioner and Sri C.B. Tripathi, learned Special Counsel for the respondents. Learned counsel for petitioner submitted following two points for consideration before this Court. (1) The assessment orders creating the liability of sales/trade tax dues is illegal and void in as much as admittedly the eligibility certificate was granted to proprietorship concern and the assessee Company succeeded to the business of proprietorship concern and it was entitled to avail the benefit of the eligibility certificate for remaining unexpired period. (2) At any rate, the outstanding liability of the Private Limited Company cannot be recovered from the personal assets of the petitioner who was the Director in the Company having 95% holding. Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The other assessment orders are not on the record. All assessment orders are appealable before the Appellate Authority and thereafter before the Tribunal and then a revision is provided before the High Court. The petitioner could have challenged the assessment order if he was so aggrieved by availing remedy of appeal which is more effective as there, the question of fact sought to be raised here for the first time with regard to filing of the application could be adjudicated upon more appropriately. The upshot of the above discussion is that in the absence of relevant documents and the pleadings, we do not find any merit in the point no. 1. Point No. 2 :- In fact, this is the main point which was urged by petitioner's counsel with all force and vigour. Learned counsel for the petitioner on the strength of a Division Bench decision of this Court in M/s Meekin Transmission Ltd., Kanpur Nagar and another versus State of Uttar Pradesh and others, 2008 U.P.T.C. 600, submitted that in any case, the sales/trade tax dues is of the Private Limited Company, which cannot be recovered from personal assets of its Director, here from the petitioner. The relied decision upon suppo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . For the sake of convenience, the said provision is reproduced below: Section 18― Liability of directors of private company in liquidation 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. A bare perusal of the above quoted provision would show that 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 central sales tax dues, unless he proves that non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o so that the non-recovery of the tax was due to any misfeasance, gross neglect, or breach of duty on the part of the directors with the assets of the Company. It has been stated that no inquiry was conducted by the Assessing Authority. Reference has been made to Section 16(1) of the Act. The written submission is based on hypothesis and assumption of certain facts but their existence have not been shown on the record. No attempt has been made by the petitioner to raise such pleas by getting them incorporated in the writ petition by way of amendment. The scope of written submission cannot be enlarged beyond the pleas raised in the writ petition or argument advanced at the time of hearing of the writ petition. After close of hearing, the pleas particularly factual pleas cannot be permitted to be raised by way of written submission. The pleadings as stand today and arguments which were raised during the course of hearing of the writ petition, it is not possible to adjudicate upon the points sought to be raised through written submission for the first time touching the factual aspect of the case. The pleadings of the petitioner are short of necessary averments. Therefore, we are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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