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TMI Blog2017 (10) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... up as in the said case, cannot be invoked, as the defaulter was a public limited company. It has clearly stipulated that as against the petitioner who was the erstwhile director of public limited company, proceeding under Section 19B which has been invoked by the respondent for issuing impugned recovery notice, could not have been invoked against the petitioner - recovery notice issued against the respondent invoking Section 19B of the Act, is without jurisdiction - petition allowed. Recovery from petitioner in his individual capacity - Held that: - the impugned assessment orders cannot be given effect to, against the petitioner nor any recovery can be made from him. The petitioner is not required to challenge the impugned assessment ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars of tax, failing which the petitioner was informed that action will be proceeded to recover the arrears under the Revenue Recovery Act and Section 26 of the TNGST Act 1959. 3. The legal issue as to whether the respondent can proceed against erstwhile Director of a Public Limited Company for recovery of tax payable by the Company is no longer res-integra and has been settled by the Hon'ble Supreme Court in the case of M.Rajamoni amma and another Vs. Deputy Commissioner of Income Tax (Assessment) and others reported in 1992 volume 195 ITR page 873. The appellants before the Hon'ble Supreme Court were Directors of a Public Limited Company known as M/s. Rajamoni amma and another for the assessment years 1977-78 to 1982-83, assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enging the distraint issued by the Commercial Tax officer for recovery of arrears of sales tax due from the petitioner therein who was a Director of a Public Limited Company and subsequently resigned from the Director post. The question arose as to whether under the provisions of TNGST Act, such recovery can be done either under Section 19A or under Section 19B of the Act. The Court, after taking note of the decisions in the case of Desiraju Venkatakrishna Sarma, In re (1955) 25 Comp Case 32 (AP), Lalitha Shivaram Ubhaykar Vs.Commercial Tax Officer (1975) 35 STC 267 (Karn), Ramachandran V.State of Kerala (1984) 55 STC 209 (Ker), Punalur Paper Mills Ltd.v. District Collector, Quilon (1985) 60 STC 193 (Ker), Nishad Patel Vs. State of Kerala ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 8. In so far as the writ petition Nos. 28180 to 28185 of 2005 are concerned the impugned assessment was under the provisions of the TNGST and CST Act. Admittedly, the assessee is Union Motors Service Limited. The petitioner has questioned the assessment orders, since, it had been communicated to the petitioner in the capacity of being a Director/Erstwhile Director of the defaulting company. In the preceding paragraphs of this order, this Court given reasons as to why action cannot be initiated against the petitioner in his personal capacity for recovery of the tax due of the defaulting Company(Public limited company). In such circumstances, the impugned assessment orders cannot be given effect to, against the petitioner nor any recover ..... X X X X Extracts X X X X X X X X Extracts X X X X
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