GEORGE J MATHEW Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THE petitioner was a director in Indian Cardamom Growers Trading Corporation Limited registered under the Indian Companies Act. He resigned from the directorship in and by letter dated June 1, 1987. THE company had also filed Form No. 32 with the Registrar of Companies on June 1, 1987, as required under section 303(2) of the Companies Act, 1956, specifying the changes in the directorships of the company. It is the case of the petitioner that he had no connection whatsoever with the said company after his resignation. In or about November, 1995, the petitioner received a notice from the first respondent alleging that a sales tax of Rs. 3, 09, 165 was due from the company towards the Tamil Nadu general sales tax and the Central sales tax for the year 1981-82. Since the petitioner had nothing to do with the company, he did not reply for the same. Now, the petitioner received the impugned notice dated October 31, 2001, from the first respondent to recover the said amount under the Revenue Recovery Act. So the petitioner has filed the above writ petition challenging the jurisdiction of the respondents to recover the said amount from the petitioner. Learned counsel for the petitioner has submitted that since the petitioner had already resigned from the directorship, the recovery proceedings taken against the petitioner cannot be sustained in law. It is not in dispute that the company is in existence and not wound up. On that basis, learned counsel for the petitioner submitted that there is no power or authority for the respondents to recover the arrears of sales tax due from the company from the director who had already resigned long ago. THE learned Government advocate has submitted that since the company is liable to pay the said huge amount, the respondents sought to recover the amount from the petitioner who was the director. But he fairly admits that there is no provision to enable the respondents to take such recovery proceedings against the petitioner.To appreciate the rival submissions, it is necessary to appreciate the scheme of the Act. Section 19B of the Tamil Nadu General Sales Tax Act gives power to the authorities to recover the tax from the director of the company at the time of such winding up. Section 19B of the Act reads as follows :