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2013 (4) TMI 74 - HC - VAT and Sales TaxRecovery of tax - purchase of property - recovery of tax arrears of seller from the purchaser - Tamilnadu General Sales Tax Act, 1959 - Held that:- From the available records it is seen that the petitioner had made the necessary enquiries from the Special Tahsildar, Land Acquisition, as to whether there were any land acquisition proceedings, in respect of the land in question. The petitioner had also paid the Employees Provident Fund arrears of the vendor of the property in question, at the time of the execution of the sale deed. Further, nothing has been shown on behalf of the respondents to substantiate the claim that the purchase of the property by the petitioner company was not bona fide in nature. The respondents have not been in a position to show that the petitioner company had knowledge of the arrears of sales tax, liable to be paid by the original assessee, who is the vendor of the property in question. In such circumstances, the proviso to Section 24-A of the Tamilnadu General Sales Tax Act, 1959, would come to the rescue of the petitioner company. As long as the transaction, between the original assessee and the petitioner company, is not shown to be fraudulent in nature it cannot be said that such transaction is void, as per Section 24-A of the Tamilnadu General Sales Tax Act, 1959. - Decided against the revenue.
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