IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR FRIDAY, THE 8TH FEBRUARY 2008 / 19TH MAGHA 1929 OP.No. 9700 of 2003(D) ---------------------- PETITIONER: ------------ V.M.KUNHIMON, DIRECTOR, M/S. SOVERIN COSMETICS & CONFECTIONARIES LTD., PARAKKAT LANE, PUNKUNAM POST, THRISSUR. BY ADV. SMT.T.D.RAJALAKSHMI SRI.E.R.VENKATESWARAN RESPONDENTS: ------------- 1. THE SPL.DEPUTY TAHSILDAR (RR), THRISSUR. 2. THE ADDL.SALES TAX OFFICER-I, TIRUR BY GOVERNMENT PLEADER SRI.K.P.PRADEEP THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 08/02/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ORDER ON CMP NO.16800/2003 IN O.P. NO.9700/2003 DISMISSED: 8.2.2008 SD/-(C.N.RAMACHANDRAN NAIR, JUDGE.) APPENDIX PETITIONER'S EXHIBITS: P1: PHOTOCOPY OF DEMAND NOTICE ISSUED BY R2 AGAINST YAS BROTHERS BAKING PRODUCTS FOR THE YEAR 1989-90. P1(a): PHOTOCOPY OF NOTICE OF DEMAND DT.30.4.2002 BY R2 AGAINST YAS BROTHERS BAKING PRODUCTS. P2: PHOTOCOPY OF DEMAND NOTICE ISSUED BY R1 DT.6.3.2003. P3: PHOTOCOPY OF DEMAND NOTICE ISSUED BY R2 AGAINST YAS BROTHERS BAKING PRODUCTS FOR THE YEAR 1990-91. P3(a): PHOTOCOPY OF NOTICE OF DEMAND DT.30.4.2002 ISSUED BY R2 AGAINST YAS BROTHERS BAKING PRODUCT. P4: PHOTOCOPY OF DEMAND NOTICE ISSUED BY R1 DT.6.3.2003. P5: PHOTOCOPY OF DEMAND NOTICE ISSUED BY R2AGAINST YAS BROTHERS BAKING PRODUCTS FOR THE YEAR 1988-89. P5(a): PHOTOCOPY OF DEMAND NOTICE ISSUED BY R2 AGAINST YAS BROTHERS BAKING PRODUCTS FOR THE YEAR 88-89 DT.30.4.2002. P6: PHOTOCOPY OF DEMAND NOTICE ISSUED BY R1 DT.6.3.2003 FOR THE YEAR 1988-89. TRUE COPY PA TO JUDGE C.N.RAMACHANDRAN NAIR, J. .................................................................... O.P. No.9700 of 2003 .................................................................... Dated this the 8th day of February, 2008. JUDGMENT The petitioner is challenging recovery proceedings for recovery of arrears of sales tax due from M/s.Yas Brothers Baking Products, the assets of which were taken over by a company of which petitioner is a director. The defaulter's property can be proceeded against for recovery and if the company which took over the defaulter's assets have transferred the same, then directors also will be personally accountable. Even though petitioner has alleged that Section 26C of the KGST Act is applied against the petitioner, I do not think Section 26C has any application because recovery is not of the tax due from the company. The assets of the defaulters namely, the partnership firm if taken over by the petitioner's company, can be proceeded against. If recovery is not possible, there will be direction to the respondents to proceed against personal property of the partners of the defaulter-firm in terms of Section 21 of the KGST Act. The O.P. is disposed of as above. C.N.RAMACHANDRAN NAIR Judge pms