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2016 (1) TMI 1223 - HC - VAT and Sales TaxRecovery of sales tax - Proceedings against the property purchased by the appellants - there was a sales tax arrears against the property of which the appellants were not aware of - Held that: - it is open for the revenue authorities to take steps to recover the amount from the properties sold by the defaulter at Muvattupuzha, we do not think that the revenue authorities will be justified in proceeding against the property of the appellants in this case. The appellants have a case that they are the subsequent purchasers of the property and that they were not aware of the sales tax arrears. They also have a case that there is no charge created on the properties purchased by them. It is apparent from the materials on record that though it will be proper on the part of the revenue authorities to proceed against the properties in the hands of the defaulter, his wife and children, in the absence of any statutory provision which creates a charge on such properties or creates a legal impediment to treat such transfer void, it may not be possible for the revenue authorities to proceed against the properties in the hands of the appellants. Even according to the appellants, they purchased the properties as per sale deed dated 27/04/2007, 28/04/2007 and 17/05/2007. At the time when the properties were purchased, no proceedings were initiated against the properties. Proceedings were taken only when Ext.P10 had been issued on 11/08/2008. As far as the appellants are concerned, we do not think that the revenue authorities are entitled to invoke Section 44 of the Act - Therefore, in the absence of any statutory provision which creates a charge on the property or declares the transfer as void and not binding on the Government, and since there was no attachment on the properties prior to the date on which the appellants had purchased the property, the said property cannot be proceeded by invoking the provisions of the Act. The property of the appellants were proceeded only on account of a mistake of fact, we do not think that it amounts to wilful contempt. Accordingly we do not find it necessary to proceed with the contempt case - the title of petitioners held good - petition allowed - decided in favor of petitioner.
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