Rajiv Sharma, J.

1. M/s Sunshine Industries Ltd. Rudrapur is a limited company. It was incorporated under the Companies Act, 1956 on 08.12.1995. Its registered office is at National Capital Territory of Delhi. It was incorporated to do the business in manufacturing and sale of MS Ingots and alloys.

2. Petitioners were appointed as Directors of the company for a period of one year, as per Clause 80 of Article of Association.

3. The assets of the company were assessed to Rs.3,57,47,354.55/- as on 01.04.2006. Petitioners have placed on record the balance-sheet of the company as on 31.03.2007. The company was assessed under the Uttarakhand VAT Tax, 2005 for the assessment year 2007-08. The liability was created against the company. Petitioners have placed on record a copy of assessment order for the year 2007-08 under Section 25(7) of the Vat Act as well as Section 9(2) of Central Sales Tax Act.

4. Respondent no.2, on 12.12.2011, issued a recovery certificate to the District Magistrate/Collector of District U.S. Nagar for recovering the tax dues and penalty imposed upon the company for the assessment year 2007-08.

5. The case of the petitioners, in a nutshell, is that the director