Heard Mr.V.Sundareswaran, the learned counsel appearing for the petitioner and Mr.S.Kanmani Annamalai, the learned Additional Government Pleader for the first respondent.
2. The petitioner, who was a Director of the second respondent/Company has challenged the distraint notice, seeking to proceed against the petitioner's individual property, for the tax arrears of the second respondent/Company.
3. When the Writ Petition was filed, the Company was contesting the assessment made for the relevant years, and the Appeal was pending before the Tamil Nadu Sales Tax Appellate Tribunal, Chennai, in T.A. No.1368 of 2002 in respect of the assessment year 1998-99 under CST Act, which was allowed, by an order dated 04.11.2000. Insofar as the Petitions in O.P.Nos.303 and 304 of 2004 in respect of the assessment years 1997-98 and 1998-99 are concerned, the same were pending before the Tamil Nadu Taxation Special Tribunal, Chennai. In the background of these facts, interim order was granted.
4. The learned counsel for the petitioner would submit that, Section 19 (B) of the TNGST Act would come to the aid of the petitioner, which provides that the liability cannot be fastened on a Director of a Company, unless, gross negligent, misfeasance, or breach of duty has been made out to make him liable. However, this issue need not be considered at this juncture, since the petitioner does not have any information as to what happened to the Appeals filed by the second respondent. Therefore, while closing the Writ Petition, the respondents are restrained from taking any coercive action against the petitioner, which is the subject matter of this Writ Petition and proceed against the Company, subject to the orders passed by the Appellate Tribunal. No costs. Consequently, connected Miscellaneous Petition is closed.
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1. The Commercial Tax Officer, Saligramam Assessment Circle, Chennai-600 083.