Section 21A in The Jammu and Kashmir General Sales Tax Act, 1962
21A. [ Recovery of tax from private companies. [Section 21-A inserted by Act/kill of 1978, Section 25 and re-numbered as sub-section (1) thereafter sub-section (2) added by Act X of 1984, Section 20.]
(1)Notwithstanding anything contained in any other law for the time being in force, where any tax due from a private company, whether existing or under liquidation or liquidated, cannot be recovered, every person who was Director of that private company at any time during the year shall be jointly and severally liable for the payment of such tax unless he proves to the satisfaction of the assessing authority that the non-recovery is not attributable to any gross negligence, mis-pleasance or breach of duty on his part in relation to the affairs of the company.(2)A Hindu undivided family notwithstanding its partition complete or partial, shall be deemed to continue as undivided so long as any proceedings under the Act are pending or can be initiated under any provision of the Act for the purpose of levy and recovery of any amount of tax, penalty or interest and all erstwhile members of such family shall be personally and jointly liable to deposit any such sum payable by the family.]
