Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2014 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 176 - HC - VAT and Sales TaxRecovery of dues from the purchaser of property - Obligation of payment of duty on successor of property - purchaser claims that he had no knowledge of dues pending - malafide intention - Attachment of property - Charge on property - Held that:- Section 16-C of the A.P.G.S.T. Act, 1957 stipulated that, notwithstanding anything to the contrary contained in any law for the time being in force, any amount of tax, penalty, interest and any other sum, if any, payable by a dealer or any other person under the Act, shall be the first charge on the property of the dealer or such person. Section 17-A of the A.P.G.S.T. Act, 1957 provided that where, during the pendency of any proceeding under the Act or after completion thereof, any dealer creates a charge on, or parts with possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever of, any of his assets in favour of any other person, with the intention to defraud the revenue, such charge or transfer shall be void as against any claim in respect of any tax, or any other sum payable by the dealer as a result of the completion of the said proceeding or otherwise. It is only if the defaulting dealer proves that transfer of the property, which is subject to first charge under Section 26 of the A.P. VAT Act, is not with the intention to defraud revenue, would the transferee be entitled to claim title over the subject property for, otherwise, such transfer of property is void. Where property has been transferred and the defaulting dealer, who has transferred the property which is subject to a statutory charge under Section 26 of the A.P. VAT Act, does not discharge the onus of proving that the transfer was not with the intention to defraud revenue, a person, who has purchased such immovable property from the defaulting dealer, cannot claim protection either of Section 53 of the Transfer of Property Act or of Section 100 thereof, on the ground that he is a bonafide purchaser of the property for valid consideration and without notice of the charge. Even after a notice was issued in Form IV, the 4th respondent did not dispute their liability to pay arrears of VAT for the years 2005-06 and 2006-07 and, instead, made part-payment. Though notice of this Writ Petition was served on the 4th respondent, no counter-affidavit has been filed by them to show that transfer of property, during pendency of proceedings under the A.P. VAT Act for the years 2005-06 and 2006-07, was not with the intention to defraud the revenue. It is made clear that in case the petitioner makes payment of the tax arrears, due from the 4th respondent prior to the date of transfer i.e., 17.03.2007, within four weeks from today the subject property shall not be put to sale. On such payment it is open to the petitioner to institute appropriate legal proceedings to recover the amount, paid by them to the revenue, from the 4th respondent. It is also made clear that, in case the petitioner does not make payment within four weeks from today, it is open to the respondents to bring the charged property to sale for recovery of the tax arrears due from the 4th respondent prior to the date of transfer i.e., 17.03.2007. - Decided against the petitioner.
|