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2022 (9) TMI 939 - HC - VAT and Sales TaxRecovery of dues (commercial tax arrears) - Seeking registration of charge in respect of the property - purchase of property through public auction - Section 24-A of TNGST Act - HELD THAT;- Reliance upon the provisions of Section 24-A are misplaced in the facts and circumstances of this case. Section 24 of the Act sets the stage for the raising of a valid demand. To invoke the protection afforded by Section 24-A, the revenue must engage in some constructive act, such as identification of the properties of a defaulting assessee, communication with the assessee concerned in that regard, issuance of a notice of attachment in statutory form, communication of the attachment to the sub-registrar concerned for creation of charge and ensuring that the encumbrance certificate reflects such charge. The respondent officials, have not, in the present case, engaged in any of the acts as aforesaid or taken any precautions to secure the interests of the revenue. Mere reference to Section 24-A is insufficient to protect the interests of the Department and enforcement of the demands can be proceeded with only if the assets have been attached in the first place - In the present matter, as in so many others, there has been absolutely no move by the Commercial Taxes Department to secure its interest by actual attachment of the property. The attachment of the property is a pre- condition, without which, the provisions of Section 24-A are of no assistance to the revenue. The burden rests upon the revenue to establish that the consideration for the property is inadequate, that the vendor had due notice of the pendency of the sales tax proceedings and the transfer itself, was a measure to evade tax. In the present case, the parties, that is, the petitioner and the defaulting assessee are admittedly unrelated and the transaction of purchase is bonafide - Section 24A is also inapplicable in the present case, since the sale transaction was in the year 2010 and a mere demand without any action taken by the Commercial Taxes Department to secure the properties in question would not justify the present impugned action taken belatedly after nine years. Petition allowed.
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