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TMI Blog2022 (2) TMI 1165X X X X Extracts X X X X X X X X Extracts X X X X ..... wing reliefs: (A) Your Lordships may be pleased to issue a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or directions to the respondent authorities to immediately lift the attachment on Bank Accounts being current A/c bearing no.066005001010670 maintained with AMCO Bank, Girdhar Nagar Branch, Ahmedabad. (B) Your Lordships may be pleased to issue a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or directions to quash and set aside the impugned notice / communication dated 07.12.2021 (at Annexure B) and further be pleased to declare that the petitioner is not liable for the dues of M/s. Neha Exim Private Limited; (C) Your Lordships may be pleased to issue a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or directions to restrain the respondent authorities to initiate any others recovery actions against the petitioner for alleged dues of M/s. Neha Exim Private Limited; (D) During the pendency and final disposal of the present petition, Your Lordships may be pleased to direct the respondent authorities to restrain from taking any coe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Assistant Commissioner of State Tax [Special Civil Application No.229 of 2022 decided on 13th January 2022]. We quote the relevant observations made by this Court as contained in para 6 of the order passed in the case of Paras Shantilal Savla (supra) as under: 6. We may quote the relevant observations rendered in Special Civil Application Nos. 243, 3103 and 7578 of 1991 decided on June 17, 2004. The judgment reads thus: 1. Special Civil Application No.243 of 1991 challenges the constitutional validity of sub-section (4A) of Section 47 of the Gujarat Sales-tax Act, 1969 on the ground that the said provisions are violative of Articles 14, 19(1)(g) and 300A of the Constitution of India. The said petition also challenges the order dated 5.8.1989 passed by the Assistant Sales-tax Commissioner (Appeals), Baroda on the basis of which the Deputy Collector, Revenue Recovery, Bombay had initiated the proceedings for recovery of arrears of sales-tax dues of M/s. Choksi Plastics Pvt. Ltd. from the present petitioners who are the Directors of the said Company. The said proceedings are challenged on the ground that the Company and its Directors being separate legal entities, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cent to 18 per cent w.e.f. 1.9.2001. 6. As regards challenge to the constitutional validity of subsection (4A) of Section 47 of the Act, our attention is invited to the decision of another Division Bench of this Court in Ashapura Mineral Company vs. State of Gujarat Ors., (1993) 89 STC 289 wherein the same challenge was raised before this Court. After examining the provisions under challenge and the relevant authorities and after examining various submissions, this Court turned down the challenge and held as under:- Section 47(4-A) of the Gujarat Sales Tax Act, 1969, which provides for payment of interest at the rate of 24 per cent per annum on amounts of tax not paid within the prescribed time or within the time specified in notices issued under Section 47(4) or on any amounts remaining unpaid, is a provision for payment of interest by a dealer who does not pay tax within the time prescribed for its payment, or on or before the date specified in the notice issued under sub-section (4). The liability to pay interest arises when tax becomes due, either as a result of furnishing of declaration or return by the dealer or on assessment or reassessment as the case may be. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, the Legislature was justified in treating the State Government as a separate class and providing for a higher rate of interest on the dues of the Government of the State. 7. In view of the aforesaid pronouncement of this Court, the prayers challenging the constitutional validity of the provisions of sub-section (4A) of Section 47 of the Gujarat Sales-tax Act, 1969 are hereby rejected. 8. Coming to the second controversy involved in Special Civil Application No.243 of 1991 and also in Special Civil Application No.7578 of 1991, Mr Hasurkar and Mr Mankad, learned counsel for the petitioners have submitted that since the Company and its Directors are separate legal entities, the liability of the Company to pay sales-tax on sale of goods effected by the Company cannot be fastened on the Directors personally or on the personal properties of the Directors. Referring to the provisions of Section 26, it is submitted that there are special provisions regarding liability to pay tax in certain cases like on the death of the dealer, partition of a Hindu undivided family, dissolution of a firm and transfer of business, termination of the guardianship or termination of the trust, bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s-tax Officer, Godhra and the Recovery Officer proceeded against the personal properties of the Directors of Choksi Plastic Pvt. Ltd.. Similarly, in Special Civil Application No. 7578 of 1991 nothing is brought to our notice to indicate that the concerned authority had taken any conscious decision to fasten the Company's liability on the Directors of the Company personally or on their properties. 11. In view of the above factual position, it is not necessary to examine the controversy at length. Suffice it to state that the respondents are not in a position to point out any statutory provision empowering the sales-tax authorities to fasten the liability of Company on its Directors in the matter of payment of sales-tax dues. There appears to be substance in the submission made on behalf of the petitioners that Section 26 containing the said provision regarding liability to pay tax in certain cases covers several contingencies such as the liability in respect of the business carried on by an individual dealer after his death, the liability in respect of the dues where the dealer was an HUF and there is partition amongst various members or group of members; there is dissoluti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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