Section 18
Liability of directors of private company in liquidation.
The Central Sales Tax Act, 1956
About this Act
An Act to formulate principles for determining when a sale or purchase of goods takes place in the course of inter-State trade or commerce or outside a State or in the course of import into or export from India, to provide for the levy, collection and distribution of taxes on sales of goods in the course of inter-State trade or commerce and to declare certain goods to be of special importance in inter-State trade or commerce and specify the restrictions and conditions to which State laws imposing taxes on the sale or purchase of such goods of special importance shall be subject.
1[18. Liability of directors of private company in liquidation.--Notwithstanding anything contained
in the Companies Act, 1956 (1 of 1956), when any private company is wound up after the commencement
of this Act, and any tax assessed on the company under this Act for any period, whether before or in the
course of or after its liquidation, cannot be recovered, then, every person who was a director of the private
company at any time during the period for which the tax is due shall be jointly and severally liable for the
payment of such tax unless he proves that the non-recovery cannot be attributed to any gross neglect,
misfeasance or breach of duty on his part in relation to the affairs of company.]
Notes
1. Ins. by s. 13, ibid. (w.e.f 1-4-1973).