Case Law Details
Manharlal Hirjibhai Virdiya Vs Assistant Commissioner of Commercial Tax (Gujarat High Court)
Facts- The only question that arises is whether for the purpose of recovery of sales tax dues under the Gujarat Value Added Tax Act and Gujarat Sales Tax Act against the private limited company, the personal property belonging to the Managing Director of such company can be attached.
Accordingly, the order passed attaching the personal property of the petitioner is challenged.
Conclusion- In the case of Mr. Chokshi Vs. State of Gujarat it was held that the auction of the residential property is illegal and bad-in-law. Further, attaching/ selling of private property of the Managing Director was also restrained for realization of the dues.
On the basis of the observation made in the case of C.V. Cherian and Mr. Chokshi it was held that attaching director’s personal property for recovery of sales tax dues is illegal and bad-in-law.
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