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2021 (8) TMI 483 - HC - VAT and Sales TaxRecovery of Sales Tax Dues - Cancellation of Auction - Intended purchaser - The appellant is before us contending that the auction should not have been cancelled on the ground that the property was never owned by the Co-operative Spinning Mills and without prejudice to such contention, it is submitted that the refund of the amount collected from the appellant should have been directed to be refunded with commercial penal interest - HELD THAT:- It may be true that the Commercial Taxes Department accepted the said property as one of the securities at the time of granting registration under the provisions of the Tamil Nadu General Sales Tax Act, but that may not be a ground which will inure in favour of the appellant who voluntarily participated in the auction sale and therefore, as an intending purchaser, the appellant was required to exercise due diligence and make thorough verification and cannot turn around and say that it is for the Department to verify all the facts. The Doctrine of Caveat Emptor stares at the appellant. The learned Single Bench was right in refusing to grant the relief sought for and it is equally right in directing the amount paid by the appellant to be refunded and also with regard to the rate of interest. The appellant is a Charitable Trust and has a huge establishment in Vellore and it is also represented that it is doing several charitable activities. If that is so, the appellant can be gracious enough to give up the claim for interest payable by the Government, because, the Government Exchequer is greatly strained due to Covid-19 Pandemic and it is common knowledge that several philanthropists, industrialists, Charitable Trusts, individuals, Government servants have come forward to voluntarily contribute to the Government to enable them to tackle the pandemic situation. Appeal dismissed.
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