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| The Tax Publishers 2020 TaxPub(VAT) 0111 (Mad-HC) REVENUE RECOVERY ACT, 1890
Section 6
Where petitioner purchased properties, which were already attached by revenue for sales tax dues and were sought to be auctioned, considering fact that petitioner never approached revenue department to find out as to whether any dues were payable by seller /existence of any charge on the properties, before purchase of properties, writ petition was dismissed.
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Property liable to sale - Purchase of property already attached for sales-tax arrears - Purchaser of property claimed to be unawared about charge created by revenue against property -
Petitioner purchased properties which were already attached by revenue for sales tax dues. He challenged notice of revenue stating that properties in question which were purchased by him were going to be auctioned for non-payment of sales tax arrears of Rs. 5,80,836 by seller. Held: Court opined that petitioner ought to have taken necessary care and caution while purchasing properties. No documents/papers were filed by petitioner to show that he had approached and contacted office regarding requirement of any details as regards existence of any charge on the properties. Thus, it was clear that he never approached revenue department, to find out as to whether any dues were payable by seller /existence of any charge on the properties, before purchase of properties. Writ petition was dismissed and petitioner was granted liberty to approach competent Civil Court against seller for damages or else to establish his right, as he claimed to be a bona fide purchaser.
REFERRED : Mrs. Meenakshi. J. Ganesh Kumar v. Deputy Commercial Tax Officer, Srivilliputhur & Anr. 2010 SCC OnLine Mad 6460 : (2011) 41 VST 150, K. Senthil Kumar & Ors. v. Commercial Tax Officer, Erode & Anr. (2006) 148 STC 204 (Mad)
FAVOUR : Against the petitioner
A.Y. :
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