SURINDER NATH KHOSLA Vs. EXCISE AND TAXATION COMMISSIONER

JUDGEMENT

(1.) THIS writ petition was admitted to a Division Bench, on account of its importance at the time of admission, on 13th December, 1963. It was specifically ordered that it should be set down for hearing on 18th December, 1963, but in spite of this order it appears that the return was filed as late as February, 1964, though the affidavit purports to have been sworn in December, 1963.

(2.) THE only question which this petition raises is whether the managing director of a limited company registered under the Indian Companies Act can be arrested for the realisation of arrears of sales tax due by the limited company. The limited company in the present case is the New Age Publication Limited, Patiala, and Shri Surinder Nath Khosla, Advocate, its managing director.

(3.) IN the return, the grounds on which the impugned action has been sought to be justified is that the petitioner had himself been actually carrying on the business in his personal capacity under the guise of Messrs New Age Publication Limited, Patiala. A further plea sought to be raised is that the petitioner was himself a dealer liable to pay the tax because he had himself been carrying on the business ; this liability was sought to be supported under Rule 40 ( 1) of the Rules framed under the East Punjab General Sales Tax Act, 1948.