Section 88 - Liability in case of company in liquidation of CGST ACT, 2017

                  88. (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.

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