1974 Supreme(Kar) 179

Karnataka High Court
Judges : E.S.Venkataramiah
LALITA SHIVARAM UBHAYKAR - Appellant
Versus
COMMERCIAL TAX OFFICER, XII CIRCLE, BANGALORE-9 - Respondent
Writ Petition 1749 Of 1973
Decided On : 08/16/1974
Advocates Appeared :
G.V.SHANTHARAJU, K.SRINIVASAN

The absence of a statutory provision authorizing recovery from a company's director for the arrears of sales tax payable by the company.

Headnote:

Recovery of Sales Tax - Director's Liability - The court quashed the recovery proceedings initiated against the petitioner, who was a director of a company, for the arrears of sales tax payable by the company, holding that there was no provision in the statute authorizing recovery from a company's director.

Fact of the Case:

The petitioner, a director of a company, was subjected to recovery proceedings for the arrears of sales tax due from the company. The petitioner filed a writ petition challenging the recovery proceedings.

Finding of the Court:

The court found that there was no provision in the statute authorizing recovery of arrears due from a company by proceeding against its director. As a result, the recovery proceedings were quashed, and the respondents were directed to forbear from proceeding against the petitioner for recovering the arrears of sales tax payable by the company. The petitioner was also awarded costs.

Issues: Recovery of sales tax arrears from a company's director, jurisdiction of the sales tax authorities to initiate recovery proceedings against a director.

Ratio Decidendi: The court's decision was influenced by the absence of a statutory provision allowing recovery from a company's director for the arrears of sales tax payable by the company.

Final Decision: The recovery proceedings initiated against the petitioner were quashed, and the respondents were directed to forbear from proceeding against the petitioner for recovering the arrears of sales tax payable by the company. The petitioner was awarded costs.