SHASTRI NAGAR, P.S.SHASTRI NAGAR, TOWN & DISTRICT-PATNA Vs. STATE OF BIHAR THROUGH THE DISTRICT CERTIFICATE OFFICER, COLLECTORATE, PATNA

JUDGEMENT

(1.) M /s Nalanda Electro Steel (P) Limited was a dealer within the meaning of Bihar Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1993 having Registration No. PCE -24 (ET) 01 -02. As per return filed on behalf of Company it allegedly admitted certain liabilities under the said Act and the Rules framed thereunder for the period July 2001 to January 2002. It did not discharge its liability, as such certificate proceedings were sought to be initiated for recovery of the dues.

(2.) Requisition for a certificate was made (Annexure -2), on basis whereof certificate was issued (Annexure -3). It is this certificate and the proceedings which have been challenged before this Court. It is submitted that a reference to the requisition and the certificate would Show that the proceedings were not initiated against the Company, which was the dealer but against the Directors in their individual capacities. It is submitted that this is impermissible in law as the liability of Company is different, distinct and independent of its Directors or share holders.

(3.) STATE and the Commercial Taxes Department have filed counter affidavit. Commercial Taxes Department had admitted that the dealer in default is the Company, which is incorporated under the provisions of the Companies Act, 1956 and the proceedings were sought to be initiated for recovery of the dues of the Company through Directors. State has taken an objection as to the maintainability of the writ petition on the ground that the petitioners had not availed of alternative remedy. They could challenge the certificate proceedings by filing petitions denying liability and the consequential orders by filing appeal.