THE CENTRAL GOODS AND
SERVICES TAX ACT, 2017
LIABILITY TO PAY IN CERTAIN CASES
Section 88:
Liability in case of company in liquidation.
(1) When any company is being wound up whether under the orders of a
court or Tribunal or otherwise, every person appointed as receiver of any
assets of a company (hereafter in this section referred to as the
“liquidator”), shall, within thirty days after his appointment, give intimation
of his appointment to the Commissioner.
(2) The Commissioner shall, after making such inquiry or calling for such
information as he may deem fit, notify the liquidator within three months from
the date on which he receives intimation of the appointment of the liquidator,
the amount which in the opinion of the Commissioner would be sufficient to
provide for any tax, interest or penalty which is then, or is likely thereafter
to become, payable by the company.
(3) When any private company is wound up and any tax, interest or penalty
determined under this Act on the company 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 such company at any time during the period for which the
tax was due shall, jointly and severally, be liable for the payment of such
tax, interest or penalty, unless he proves to the satisfaction of the
Commissioner that such non-recovery cannot be attributed to any gross neglect,
misfeasance or breach of duty on his part in relation to the affairs of the
company.