The absence of specific statutory provision empowering the recovery of outstanding Sales Tax dues from the personal property of a Director and the principle of strict construction of taxing statutes were central legal points established in the judgment.

S.C. Sharma, J.

1. The petitioner before this Court has filed this present writ petition being aggrieved by the action of the respondents in auctioning the personal property of the petitioner for satisfying the recovery of the Sales Tax dues relating to M/s. Mahesh Niranjan Jute Pvt. Ltd. a Company incorporated and registered under the Companies Act, 1956. The contention of the petitioner is that he is an individual engaged in various businesses in his individual capacity and is the owner of the property in question which is being auctioned by the Commercial Tax Department. The petitioner has categorically stated before this court that the property has been acquired by him in his individual capacity and it is not a property belonging to the Company, meaning thereby, it is a self acquired property which includes a residential house situated at Plot No. 147 / 47, Bhagwandin Nagar, Indore. The petitioner has further stated that he is a regular assessee of the Income Tax Department and has enclosed copies of the Income Tax Returns for the years 2001 to 2004. He has also stated that he is owner of a Maruti Car which also does not belong to M/s. Mahesh Niranjan Jute Pvt. Ltd. The petitioner has further stated that the Company in question was a registered dealer with the Sales Tax Department for the period w.e.f. 1-4-1998 to 31-3-1999 and the Company has been assessed as a dealer by the Sales Tax Department. An assessment order was passed under section 28(1) of the MP Commercial Tax Act by the Asstt. Commissioner of Commercial Tax, Indore Division No. 3 and vide order dt. 30th August, 2002, a demand of Rs. 4419450/- was raised. The petitioner has further stated that the Company in question being a distinct legal and juristic entity, has challenged the aforesaid demand and now the matter is pending before this Court in WP No. 547 / 2005. The contention of the petitioner is that the Sales Tax Department in spite of the fact that the Company was liable to pay the dues being a dealer, as defined under section 2(h) of the MP Commercial Tax Act, has initiated recovery proceedings against the petitioner who is a Director of the Company and a proclamation of sale vide proclamation dt. 2-8-2005 has been issued and the residential house belonging to the petitioner, situated at Plot No. 147/47 Bhagwandin Nagar, Indore has been put to auction. The petitioner has raised various grounds before this Court and he has also stated that his Car is also being sold by way of public auction by the Sales Tax Department. The petitioner has raised various grounds challenging the auction proceedings and his contention is that there is no provision under the MP Commercial Tax Act for authorising the recovery of dues relating to a Company which is a separate and juristic entity having a juristic personality, from the personal assets of the Directors and therefore the action of the Department in auctioning the personal property of the petitioner, is bad in law. The petitioner has also raised a ground that section 32 of the MP Commercial Tax Act permits the recovery of dues from a Dealer or a person liable to pay tax and only a dealer or a person liable to pay tax can be treated as a defaulter against whom recovery proceedings can be initiated. The contention of the petitioner is that the Company in question is the alleged defaulter and therefore in absence of specific provisions permitting the Sales Tax Department to recover the dues, the dues of the Company cannot be recovered from the personal property of the Director who is doing business independently. Learned counsel for the petitioner has also argued before this Court that by virtue of amendment in the MP Commercial Tax Act, 2003, section 24-A has been inserted w.e.f. 25-11-2003, which authorises the Commissioner to obtain a personal / corporate guarantee from the Directors of the Company / promoters of the Company for realisation of tax in relation to the Company and no such personal guarantee has bee