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2016 (7) TMI 1634 - HC - Indian LawsLiability of arrears of commercial tax dues - company purchased the property of another company under liquidation through auction - HELD THAT:- In the case in hand, the respondent No.1 is not a party to the contract nor any terms and conditions are incorporated by the respondent No.2 when respondent No.1 purchased the property in auction. The auction / purchaser cannot be held liable to clear the arrears of commercial tax of previous onwers in absence of there being a specific statutory provision in that regard. Reliance to be placed in the decision of Mahaveer Enterprises vs. State of M.P. & Ors. reported as [2008 (8) TMI 1006 - MADHYA PRADESH HIGH COURT], where it was held that the Commercial Tax Department has absolutely no justification or jurisdiction to order the attachment and sealing of the property of the petitioner, which had been purchased by it from M. P.F.C. Both the writ appeals were dismissed on the ground that the property purchased by the respondent No.1 – Company from the Corporation cannot be put to auction by the Commercial Tax Department of the State Government for recovery of the arrears of commercial tax from the erstwhile owners - Appeal dismissed.
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