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2020 (5) TMI 637 - HC - VAT and Sales TaxAuction Sale of Attached property - Recovery of tax - petitioner had purchased the properties which were already attached by the Department for the legitimate Government dues - HELD THAT:- This Court is of the view that the petitioner ought to have taken necessary care and caution while purchasing the properties from the third respondent. No documents/ papers have been filed by the petitioner to show that he had approached and contacted the office regarding the requirement of any details as regards existence of any charge on the properties. Thus, it is clear that the petitioner had never approached the Department, to find out as to whether any dues are payable by the third respondent / existence of any charge on the properties, before purchase of the properties. In the present case, the petitioner herein purchased the properties from the third respondent only subsequent to the attachment effected by the Department. Further, the petitioner had failed to ascertain the details of arrears payable by his vendor before execution of the sale deed - It is also seen from both the sale deeds executed between the petitioner's vendor and the petitioner, that the vendor has given an undertaking that there is no encumbrance on the properties in question and if any encumbrance arises at a later stage, he would made good the loss on his own. Reliance can be placed in the case of MRS. MEENAKSHI. J. GANESH KUMAR VERSUS DEPUTY COMMERCIAL TAX OFFICER, SRIVILLIPUTHUR AND ANOTHER [2010 (12) TMI 1094 - MADRAS HIGH COURT]. The said judgment has been passed under similar circumstances. In that case, the petitioner therein contended that he was the bona fide purchaser, since he purchased the property only after getting encumbrance certificate from the Sub-Registrar, Srivilliputhur and that when the Department had not attached the property prior to purchase of the same by the petitioner therein, it was not open to the Department to issue the notice impugned therein. Petition dismissed.
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