Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2010 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (12) TMI 1094 - HC - VAT and Sales TaxNotice issued by the first respondent/Deputy Commercial Tax Officer, Srivilliputhur in his Roc.A3/2792/2002 dated March 24, 2008 seeking issuance of a writ of prohibition to prohibit the first respondent from proceeding further in pursuance of the impugned notice challenged Held that:- A joint reading of section 24(1) and 24(2) of the Tamil Nadu General Sales Tax Act, 1959 with clause 3 of the agreement, reveals that there is an automatic charge over the property towards the arrears payable by the second respondent-company. The second respondent was well aware of the fact that the arrears related to the period from 1996-97 to 2002-03 have accrued as early as on January 2, 1998 onwards. Therefore, when they were selling the property by executing a sale deed on September 7, 2007 to the petitioner, they were all well aware of the dues payable by them. But, without clearing the dues, the second respondent’s company in collusion with the petitioner sold out the property to the petitioner. Under the circumstances, this court cannot treat the petitioner as a bona fide purchaser as he has failed to ascertain the details of arrears payable by the second respondent to the first respondent before execution of the sale deed in his favour. Writ dismissed.
|