The judgment of the Court was delivered by

YOGESHWAR DAYAL, C.J. - W.P. No. 18277 of 1988 has been filed by Ramnarayan Shahu, one of the directors of M/s. Western India Gunnies Pvt. Ltd., Hyderabad and W.P. No. 18168 of 1988 has been filed by M/s. Western India Gunnies Pvt. Ltd. represented by its manager.

Both the writ petitions are directed against the order of Commercial Tax Officer (FAC), Mehdipatnam Circle, Hyderabad, whereby the said Commercial Tax Officer had forwarded a demand for recovery of Rs. 2,51,577 towards arrears of sales tax for the assessment years including 1974-75, 1977-78, 1978-79, 1979-80 and 1980-81, due towards arrears of A.P. general sales tax and Central sales tax from M/s. Western India Gunnies Pvt. Ltd. to be recovered from the petitioner Ramnarayan Shahu and two other directors of the said company. The learned counsel appearing for the directors personally in W.P. No. 18277 of 1988 submits that under section 16-B of the Andhra Pradesh General Sales Tax Act, 1957, no recovery can be effected from the directors of a private limited company except on its liquidation and winding up process.

Section 16-B of the Andhra Pradesh General Sales Tax Act p