No provision in Sales Tax fastening Sales Tax liability of the Company on its Director: Gujarat High Court

No provision in Sales Tax fastening Sales Tax liability of the Company on its Director: Gujarat High Court The Gujarat High Court in one of its orders cited that there is no provision in the Sales Tax Act fastening the liability of the company to pay its sales tax dues on its Director. In this case, the department attached the Bank Account of the Director of a company in order to recover Rs.1,58,65,840/- from the company. The principal argument of Mr. Hiren J Trivedi, Counsel of Petitioner was that for the purpose of recovering the Sales Tax dues of the company, the department could not have proceeded to attach a personal bank account of its Director. He further submitted that it is the company that could be termed as the taxable entity for the purpose of the VAT Act, 2003. The Court agreed to this argument and the attachment on the bank account of the writ applicant was ordered to be lifted.