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2018 (3) TMI 1859 - HC - VAT and Sales TaxRecovery of arrears of sales tax - sale of immovable property in an auction - HELD THAT:- Portion of the property has been sold by the Recovery Officer - II, Debts Recovery Tribunal -1, Chennai, the fourth respondent herein, and another portion of the property has been sold by the Official Liquidator, High Court of Madras. No material has been placed by the respondents that the writ petitioner was put on notice of the arrears of tax due and payable by M/s. Moolchand Exports Limited (In Liquidation), Chennai -108, and the creation of charge over the property. No encumbrance has been made in the office of the Sub-Registrar, within whose territorial jurisdiction, properties are situated - Though Mr. M. Hariharan, learned Additional Government Pleader (Taxes), contended that the Sales Tax Department had already informed the arrears of tax due and payable by M/s. Moolchand Exports Limited, to the Tribunal, sale notice does not reflect any condition imposed on the bidders to pay the arrears of tax, payable by M/s. Moolchand Exports Limited to the Government. In the absence of any specific condition, in the sale notice that, arrears of tax due and payable by M/s. Moolchand Exports Limited, has to be paid by the auction purchaser, in the sale notice we are of the view that sale notice he should be treated as a be bona fide purchaser, without notice - the petitioner is bona fide purchaser and that he should not be imposed with any liability to pay arrears of tax, payable by M/s. Moolchand Exports Limited, (In Liquidation), Chennai. Petition allowed - decided in favor of petitioner.
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