Tds deducted-not remitted-no form 16 issued- demand from it

Dear Friends,

One employer has dediucted TDS (around Rs. 14,000/-) from salary on monthly basis during the year 2009-10 but not remitted to the Govt. and form 16 not issued to the employee.

Instead, the employer issued a letter to employee stating the details of TDS.

Also, the employee has the pay slips to prove thet tax has been deducted by the employer.

Now, dept. has issued notice to employee for around Rs. 25,000/-.

There is no fault on employee's part. He paid tax by way of TDS. It is the fault of the employer only.

The employer (a ltd. company) has stopped the business, but not liquidated.

Now, what is the remedy for this ?

Please share your views as early as possible..

Thanks in advance..

vinodaca74 @ gmail.com