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2020 (11) TMI 839 - HC - VAT and Sales TaxAmnesty Scheme - auction - recovery of arrears of tax - It is the petitioner's contention that this forfeited amount must go to reduce the liability of the petitioner, for the realization of which the Government had resorted to the auction procedure under Revenue Recovery Act - HELD THAT:- The auction steps initiated by the respondents have to be seen as for the purposes of realization of tax dues from the petitioner. It would follow, therefore, that any amount realized by the Government through the auction procedure that was resorted to for the purposes of realization of the dues from the petitioner, must go to reduce the liability of the petitioner to the Government. Although, it is a fact that the auction sale did not materialize, the forfeited amount must be seen as a portion of the sale consideration that the auction purchaser had paid, but which stood forfeited to the Government on account of the default committed by him in making the payment of the balance consideration. The said amounts forfeited to the Government should go to reduce the liability of the petitioner to the State Government. The Ext.P5 amnesty application preferred by the petitioner should be considered as a valid one for the purposes of the amnesty scheme, and the respondent should now act on the same and compute the balance amount payable by the petitioner in accordance with the amnesty scheme - Petition allowed.
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