Khalid Buhari Vs Assistant Commissioner of CGST and C.Ex
Date: February 12, 2026
Subject Matter
Director Must Prove No Gross Neglect to Avoid Company's Unrecovered Tax Liability Under Section 89.
Summary
The High Court has quashed a recovery notice issued against a Director for the tax liability of a private company. The Court held that the Director must be given an opportunity to discharge the burden of proof under Section 89 of the GST Enactments,…
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT In this writ petition, the petitioner is against the impugned recovery notice dated 25.11.2025 in Form GST DRC – 13, whereby, the petitioner’s bank account was attached for the tax liability of M/s. Trans Car India Private Limited. 2. The case of the petitioner is that the petitioner is a Director of M/s. Trans Car India Private Limited and the…