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TMI Blog2024 (7) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... lightly. It is only when there is strong factual foundation for lifting the corporate veil that the question of examining the applicability of the principle of lifting such veil would be required to be examined. In neither of the two petitions raising the controversy, the authorities have passed any specific order fastening the liability on the Directors personally, much less any factual foundation has been laid to invoke the doctrine of lifting the corporate veil. Hence it is not necessary to dilate on the said principle any further.' In view of the above settled legal position, the impugned notice dated 7th March 2023 for recovery of outstanding dues of the company from the petitioner is hereby quashed and set aside and the responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Samadhan Yojana 2019 under the bona fide belief that the supplier who had earlier defaulted in paying tax would pay the same and dues would get cleared. However, the supplier did not pay tax and therefore, RPTPL did not get benefit of the amnesty scheme. RPTPL has closed down business and it has even surrendered its registration certificate under the Central / Gujarat Goods and Services Tax Act, 2017 since year 2021. [2.4] The petitioner was never a Director of RPTPL during the relevant period for which dues had arisen under the VAT Act. The father of the petitioner was Director during the relevant period but he passed away on 14th November 2022. [2.5] Despite the petitioner was not a Director during the period when the dues arose under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s In-charge and responsible for the company at the time of alleged offence was committed. It was, therefore, submitted that the impugned notice for recovery of outstanding dues is issued to initiate coercive action against the petitioner and therefore, the same is illegal and liable to be quashed and set aside. [4] In support of his submissions, reliance was placed on the following decisions: (a) M. R. Choksi vs. State of Gujarat (2012) 51 VST 73 (Guj) (b) Pankaj Krishnavadan Mashruwala vs. State of Gujarat (2019) 68 GSTR 345 (Guj) (c) Paras Shantilal Savla vs. State of Gujarat (2021) 94 GSTR 460 (Guj) [5] Learned advocate Mr. Sheth further referred to and relied upon the decision of this Court in the case C V Cherian vs. C A Patel reported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sfer of business in whole or in part. Unlike Section 179 of the Income-tax Act, 1961, there is no provision in the Sales-tax Act fastening the liability of the Company to pay its sales-tax dues on its Directors. Reliance placed by the learned AGP on the provisions of Section 78 is misconceived. The section specifically deals with offences by companies and the criminal liability is fastened on the Directors who were in charge of and were responsible for the conduct of the business of the Company, but does not at all provide for any personal liability of the Directors to pay the sales-tax dues of the Company nor does it empower the authorities to proceed against the personal properties of the Directors. The very fact that the same Legislature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ind substance in the contention of the learned counsel Mr. Kazi appearing on behalf of the petitioner that the attachment and proposed auction of the residential building No. 56, Near Hanuman Temple, Valinath Mahadev Road, Kalol, was on the face of it without jurisdiction (See Division Bench decision of this Court dated June 17, 2004 passed in Special Civil Application No. 243 of 1991 with Special Civil Application No. 3103 of 1991 and Special Civil Application No .7578 of 1991, in the case of Mr.Choksi v. State of Gujarat). [8] In view of the above settled legal position, the impugned notice dated 7th March 2023 for recovery of outstanding dues of the company from the petitioner is hereby quashed and set aside and the respondents are restr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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