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2007 (9) TMI 563 - HC - VAT and Sales TaxAuction purchase - petitioners are auction purchasers getting the auctioned property mutated in their name in the Revenue record - entry of demand of arrears of sales tax dues of erstwhile owners has been entered into the Revenue record - Held that:- The liability of the borrower and its directors cannot be fastened upon the petitioner, particularly, when the State had, after ascertaining the factual position from its various field agencies accorded permission to transfer the land in favour of the petitioner. If the Revenue record did not reflect the factum of the State's liability then it was not expected for the petitioner to make an inquiry from all the concerned departments of which the petitioner even may not knowing in relation to its debts. The effect of accepting the State's submission to the contrary, would only promote and strengthen dishonest persons, who would be transferring their units from one hand to another from time to time without making the payment of dues. Further, there is nothing on record to show the tax liability pertaining to Regent Rubber. The petitioner had purchased the property to set up an industry which has been delayed for no fault on his part. W.P. allowed. Order rejecting petitioner's application for not mutating the entry in their name is quashed and set aside.
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