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2007 (9) TMI 583 - HC - VAT and Sales TaxWhether it is necessary that a demand for collection of arrears of sales tax be made to attract section 26A of the Kerala General Sales Tax Act, 1963 ? Whether the assignees of an assessee under the Kerala General Sales Tax Act, 1963 which transaction is hit by section 26A, could claim that they are bona fide transferees so as to avoid the rigour of section 26A? Whether before revenue recovery sale, the person in possession could be directed to vacate the house in the property sought to be sold? Held that:- In the present case, the transfers were effected after proceedings were initiated against the assessee under the Act. Therefore, the assignment deeds executed by the partners of the assessee-firm in favour of the petitioners are void under section 26A. Exhibit P 2 order is valid and the learned single judge has rightly rejected the contentions raised by the petitioners. In the instant case, powers under sections 37 and 38 were not invoked. On the other hand, respondents 5 and 6 were directed to vacate the houses. We hold that exhibits P3 and P4 notices cannot be implemented against the petitioners. However, it is made clear that this will not preclude the respondent concerned from initiating steps under sections 37 and 38 of the Revenue Recovery Act after notice to the petitioners. Therefore, exhibits P3 and P4 notices, as against the petitioners, shall be kept in abeyance till appropriate proceedings under section 37 of the Kerala Revenue Recovery Act are initiated or until the sale is finalised as per the Act, whichever event occurs earlier. Writ appeal partly allowed
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