Directors Cannot Be Personally Liable For Company's Service Tax Dues Under Finance Act 1994; SVLDRS Declaration Category Error Correctable

HC determined the petitioner's declaration under SVLDRS-2019 was incorrectly filed under "litigation category" instead of "Amount in Arrears Category." While the discharge certificate cannot be revoked under Section 129(2)(c), the Designated Authority has powers to correct mistakes if misled by improper declarations. The court found no legal provision under Finance Act 1994 allowing recovery of company's tax dues from directors' personal accounts, thus quashing the bank account attachment order. The recovered amount of Rs. 22,00,000 can be adjusted against deficit amount subject to director's consent. Petitioner remains eligible for relief under Section 124(1)(c)(ii) rather than 124(1)(a)(ii), contingent upon payment of correct amount with interest. .....

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