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2018 (3) TMI 1473 - HC - VAT and Sales TaxRecovery of sugarcane purchase tax and arrears of sales tax - legality and validity of the attachment order - auction - SARFAESI Act - Held that: - Admittedly, respondent No.3 had no licence to run Sugar Factory. It is not the case of any of the respondents that it was being run by respondent No.3 for manufacturing sugar until issuance of public notice for auction sale on 16th January, 2012 and even thereafter till it was given in possession of the petitioner on 22nd November, 2012. If the petitioner makes such defunct factory functional and starts manufacturing sugar under its own licence, it cannot be said that the petitioner purchased the business interest of respondent no. 4. It is, thus, clear that the petitioner has not purchased and succeeded the business interest of respondent NO. 4. Respondent NO. 2 cannot recover the dues payable from respondent No. 4 by enforcing any charge against the secured assets purchased by the petitioner in the auction - The issue of priority between the Sales Tax Authorities and respondent No. 3 shall be decided in appropriate proceedings before the appropriate forum in accordance with law - petition allowed.
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