Lakshana Cotton Spinning Mills Limited Vs Commercial Tax Officer (Madras High Court)
Madras High Court held that recovery action against the Directors of the company under the provisions of the Tamil Nadu General Sales Tax Act, 1959, Central Sales Tax Act, 1956 and Revenue Recovery Act not justified since company is non-existent.
Facts- Lakshana Cotton Spinning Mills Ltd. has gone into Liquidation and official liquidator has been appointed. The company stood dissolved by order dated 20.12.2017. The respondents has filed a reply to the status report, where they take cognizance of the status of the assessee. In conclusion and succumbing to the status of the assessee which, as on date, is non-existent, they seek liberty to proceed with recovery action against the Directors of the company, if any, under the provisions of the Tamil Nadu General Sales Tax Act, 1959, Central Sales Tax Act, 1956 and Revenue Recovery Act.
Conclusion- Held that we are of the considered view that such specific liberty as sought for is not liable to be granted. We may, at best, grant liberty to the Department to take recourse to such action as may be provided in accordance with law and in line with the applicable statutory provisions.
