ARUN KAPOOR Vs. ASSISTANT COLLECTOR

JUDGEMENT

(1.) These are three petitions under Articles 226 and 227 of the Constitution for quashing the notices issued to the petitioners by the Assistant Collector, Delhi, for the recovery of arrears of sales tax payable by the companies in which the petitioners were directors. Since the parties as well as the question for determination are common, these petitions are being decided by this common order.

(2.) Arun Kapoor, petitioner in Civil Writ Petitions Nos. 6795 and 6797 of 1998, was one of the directors in Aruna Day Rubber Industries Pvt. Ltd,, Sonepat, and also in Organo Rubber Pvt. Ltd., Sonepat. Similarly, Ashok Kapoor, petitioner in Civil Writ Petition No. 6796 of 1998, was one of the directors in Elasto-Chem Pvt. Ltd., Sonepat. All the three aforesaid companies carried on business at M-3, Industrial Area, Sonepat. Ex parte assessments under the Haryana General Sales Tax Act, 1973 and the Central Sales Tax Act, 1956, were framed by the Excise and Taxation Officer-cum-Assessing Authority, Sonepat and demand of sales tax was created. The amount of sales tax was sought to be recovered as arrears of land revenue from the petitioners personally on the ground that they were directors in the companies.

(3.) The plea put forward by the petitioners is that the amount of tax cannot be recovered from them as they were merely directors of the company and were not liable to pay in their personal capacity the dues payable by the company.