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TMI Blog2019 (5) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the liability of the Company to pay its sales tax dues to its Director and therefore, the impugned attachment notice dated 27.12.2017, is required to be quashed and set aside. Petition allowed - decided in favor of petitioner. - MS HARSHA DEVANI AND MR BHARGAV D. KARIA, JJ. For The Petitioner (s) : UCHIT N SHETH (7336) For The Respondent (s) : MR SOAHAM JOSHI, ASSISTANT GOVERNMENT PLEADER ORAL JUDGMENT ( PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) 1. The learned advocate for the petitioners has tendered a purshish to place on record communication dated 29.12.2007 of the petitioners, addressed to the Bank of India, Ahmedabad. The same is taken on record. 2. Rule. Mr. Soaham Joshi, learned Assistant Government Pleader waives service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of the business of petitioners. 4.3 It is further the case of the petitioners that in December, 2007, recovery notices came to be issued to the second petitioner for alleged dues under the Sales Tax Act for the years 1998-99, 2002-03 and 2003-04; however, as the petitioners were not aware of any orders, they requested the respondents to provide copies of the orders passed, if any, but there was no response whatsoever received from the respondent authorities. Thereafter, again in October, 2009 and January, 2010, notices for recovery of the same dues were received by the petitioners. The petitioners again requested the respondent authorities to supply the copies of such orders, but there was no response from the respondents. It is the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion on part of the respondents and requested them to provide copies of the assessment orders, on the basis of which the recovery proceedings were being undertaken by the respondent No.2. The petitioners also sent reminder on 31.1.2018, but there was no response from the respondents. 4.7 It is further the case of the petitioners that since there was no response from the respondents, the petitioners applied for the copies of the assessment orders under the Right to Information Act, 2005, seeking copies of the assessment orders pursuant to which the recovery proceedings were being undertaken. Since there was no response even to the application made by the petitioners under the RTI Act, the petitioners again sent two reminder letters dated 15. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orities that for recovery of the dues of the Private Limited Company, personal properties of the Director of the Company cannot be attached under the provisions of the Code. 6.1 In support of his submissions, the learned advocate placed reliance upon the decision of this court in the case of M. R. Chokshi v. State of Gujarat , 51 VST 73 (Guj.) , wherein this court has held that in the absence of any provision permitting the sales tax authority to fasten the liability of tax of the company on its directors in the matter of payment of sales tax dues, the respondents cannot recover the dues of the Company from the Directors. The court observed that section 26 containing the said provision regarding liability to pay tax in certain cases covers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but to lift the attachment. It was submitted that therefore, at the same time the petitioner No.1 who is Director of the petitioner No.2 cannot run away from the liability arising out of the tax dues under the Sales Tax Act / Central Sales Tax Act and therefore, the attachment in question on the residential property of the first petitioner has been effected. 7.1 It was further submitted that as per the record of the department, the details furnished at the time of registration, there are two Directors, (1) Mr. Pankaj Krisanvadan Mashruwala and (2) Mrs. Jayshree Pankaj Mashruwala, and therefore, it cannot be said that the Company has any Directors outside their family and considering the fact that at a given point of time, a clear fraud has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liability of the Company to pay its sales tax dues to its Director and therefore, the impugned attachment notice dated 27.12.2017, is required to be quashed and set aside as the controversy in question is squarely covered by the above referred decision of this court. Other contentions raised by the learned advocates for the respective parties are not gone into in view of the settled position of law that the dues of the Private Limited Company cannot be recovered from the personal property of the Director in absence of any provisions to that effect in the Sales Tax Act. 9. For the foregoing reasons, the petition succeeds and is, accordingly, allowed. The impugned notice of attachment dated 22.12.2017, whereby charge is entered on the reside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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