TMI Blog2022 (9) TMI 849X X X X Extracts X X X X X X X X Extracts X X X X ..... the power of Section 34 can be exercised only in a case where the transfer of immoveable property belonging to the original assessee is made during the pendency of any proceedings under the Act and such transfer is found to be with the intention to defraud any such tax and other dues. In the present case, the transfer of goods, plant, and machinery (may be treated as immoveable property) had taken place on 12.12.1985 and 01.01.1986 for a sale consideration of Rs. 12,12,000/. On that day, no assessment proceedings and/or any proceedings under the Act and/or recovery proceedings were pending. As observed hereinabove, the assessment proceedings were concluded in the year 1984 and the same was reopened in the year 1988. The recovery certific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l assessee) and endorsed against M/s. Radico Khaitan Ltd. (hereinafter referred to as the purchaser) could not be proceeded against the purchaser, the Revenue has preferred the present appeals. 2. The facts leading to the present appeals in a nutshell are as under: 2.1 That the original assessee M/s. Shaw Scott Distillery (P) Ltd., Rampur was in arrear of Rs. 11,28,877/and Rs. 53,89,035/of trade tax for the year 1980 - 81 and 1981 - 82, respectively. The recovery proceedings were initiated against the original assessee. The recovery certificate was issued. The plant, machinery and the goods belonging to the original assessee came to be purchased by respondent herein purchaser on 12.12.1985 and 01.01.1986 for a total consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of sale of goods, plant and machinery between the original assessee and the purchaser cannot be said to be with the intention of defrauding tax or any other dues and (iii) that the purchaser was the bona fide purchaser. 2.3 Feeling aggrieved with the common judgment and order passed by the Trade Tax Tribunal, the Revenue preferred the revision applications before the High Court. By the impugned judgments and orders, the High Court has dismissed the said revision applications which has given rise to the present appeals. 3. We have heard learned counsel appearing on behalf of the respective parties at length. 4. At the outset, it is required to be noted that the dispute is with respect to the amount of tax due and payable by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall impair the rights of a transferee in good faith and for consideration. (2) Nothing in subsection (1) shall apply to a charge or transfer in favour of a banking company as defined in the Banking Regulation Act, 1949 or any other financial institution specified by the State Government by notification in this behalf. 5. Section 34 of the Act shall be applicable only in a case where there is a transfer of immovable property belonging to the original assesee, during the pendency of any proceedings under the Act with the intention of defrauding any such tax or other dues. As per proviso to Section 34, nothing in Section 34 shall impair the rights of a transferee in good faith and for consideration. Thus, the power of Section 34 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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