Assessee company's writ petitions challenging sales tax assessment and appellate orders were closed after it was wound up and dissolved. The Department sought liberty to recover from Directors; the Court declined specific liberty, granting only liberty to proceed in accordance with law.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
2024:MHC:3792
W.P.Nos.33613 to 33616 of 2007
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 04.11.2024
CORAM :
THE HONOURABLE DR.JUSTICE ANITA SUMANTH and
THE HONOURABLE MR.JUSTICE G. ARUL MURUGAN
W.P.Nos.33613 to 33616 of 2007 and M.P.Nos.1,1,1,1,2,2 and 2 of 2007
Lakshana Cotton Spinning Mills Limited represented by its Managing Director J.Madusudana Rao
Chinna Maddampalay, Coimbatore - 641 019.
.. Petitioner in the above W.Ps.
Vs
.. Respondents in W.P.Nos.33613 & 33615 of 2007
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W.P.Nos.33613 to 33616 of 2007
PRAYER in W.P.Nos.33613 & 33615 of 2007: PETITIONs filed under Article 226 of the Constitution of India praying for the issuance of Writ of Certiorari to call for the records on the files of the third respondent herein in C.T.A.No.67/00 (CST) and 31/00 (TNGST), both dated 13.10.2005 and quash the same.
PRAYER in W.P.Nos.33614 & 33616 of 2007: PETITION filed under Article 226 of the Constitution of India praying for the issuance of Writ of Certiorari to call for the records on the files of the respondent herein in TNGST No.2160284/95-96 and CST No.575100/95-96, both dated 30.6.1998 and quash the same.
In all W.Ps.
For Petitioner : Mr.N.Prasad For Respondents : Ms.Amirta Dinakaran Government Advocate - R1 and R2 Ms.B.Ambili Deputy Official Liquidator
C O M M O N O R D E R (Order of the Court was made by Dr.ANITA SUMANTH.,J)
We have heard Mr.N.Prasad, learned counsel for Lakshana Cotton
Spinning Mills Ltd., petitioner/assessee. Originally, the petitioner in these Writ Petitions was wound up by an order of this Court in C.P.No.299 of 1999 on 27.7.2000 and an Official Liquidator had been appointed as the Liquidator of the Company.
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W.P.Nos.33613 to 33616 of 2007
order of winding up had been initially stayed for a period of two weeks, extended thereafter till disposal of the Company Appeals. The order of winding up had been set aside on 26.02.2001 and thereafter on 04.11.2009 in C.P.No.299 of 1999 an Official Liquidator was appointed as Liquidator with a direction to take charge of all assets and effects of the company.
outer shell of the company which is destroyed, the core or the corporate venture continues in the hands of the transferee by whom it has been taken
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W.P.Nos.33613 to 33616 of 2007
over. However, in line with the judgment in the case of Saraswati Industrial Syndicate Ltd. V. CIT (186 ITR 278) and other judgments, they
state that in the case of dissolution, the entity wholly ceases to exist.
respondents has filed a reply to the status report, where they take cognizance of the status of the assessee. In conclusion and succumbing to the status of the assessee which, as on date, is non-existent, they seek liberty to proceed with recovery action against the Directors of the company, if any, under the provisions of the Tamil Nadu General Sales Tax Act, 1959, Central Sales Tax Act, 1956 and Revenue Recovery Act.
connected Miscellaneous Petitions are closed. No costs.
[A.S.M., J] [G.A.M., J] sl 04.11.2024 Index:Yes/No Speaking order Neutral Citation:Yes
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W.P.Nos.33613 to 33616 of 2007
To
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W.P.Nos.33613 to 33616 of 2007
Dr.ANITA SUMANTH,J. AND G.ARUL MURUGAN,J.
sl
W.P.Nos.33613 to 33616 of 2007 and M.P.Nos.1,1,1,1,2,2 and 2 of 2007
04.11.2024
6
1 issue framed by the court
Whether the writ petitions should be disposed of in light of the assessee company having been dissolved.
Colour shows how this judgement treated each authority
Principal Commissioner of Income-Tax V. Mahagun Realtors (P) Ltd.Relied on¶5
443 ITR 194
Saraswati Industrial Syndicate Ltd. V. CITRelied on¶6
186 ITR 278
4 provisions across 4 enactments
Lakshana Cotton Spinning Mills Limited represented by its Managing Director J.Madusudana Rao
The Commercial Tax Officer, P.N.Palayam Assessment Circle, Coimbatore
The Appellate Assistant Commissioner (CT), Main, Coimbatore
The Tamil Nadu Sales Tax Appellate Tribunal, Additional Bench, represented by its Secretary
Anita Sumanth
G. Arul Murugan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
