Ramesh Ranganathan, J.

The proceedings of the first respondent dated 10.08.2009 and 13.06.2010, proposing to recover arrears of tax of the defaulting dealer from the petitioner by invoking the provisions of the Revenue Recovery Act, are questioned in this Writ Petition as being illegal, arbitrary and contrary to law.

The petitioner herein, a private limited company incorporated under the Companies Act, 1956, is a registered dealer on the rolls of the second respondent from 10.11.2004 onwards. They purchased one hectare of land in Survey No.112/2 of Erraballigudem Village, Nellikuduru Mandal, Warangal District from M/s. Baba Mines and Minerals (the 4th respondent in this Writ Petition) by registered sale deed dated 17.03.2007, and claim to have paid the sale consideration through Demand Draft No.006382 dated 14.03.2007 for Rs.6,39,600/-. It is their case that they were informed by M/s. Baba Mines and Minerals that there were no dues, lien, charges or arrears of tax; on their application, to quarry black-granite on the subject land, the Assistant Director of Mines and Geology granted them permission on 31.05.2007, after which the quarry lease was transferred and a deed executed in their favour on 16.06.2007; they had verified, whether there were any encumbrances on the subject land, from the Sub-Registrar Office, and were informed that there were none; the third respondent issued notice dated 10.08.2009 informing them that M/s. Baba Mines and Minerals, who had sold the subject land, were in arrears of tax for the years 2005-06 to 2007-08 and, under Section 27(1) of the A.P. Value Added Tax Act, 2005 (for short, the “A.P. VAT Act”), persons who have purchased property, belonging to a defaulting dealer, can be proceeded against for recovery of tax arrears; they had informed him, by letter dated 24.08.2009, that they had purchased the property, under registered sale deed, from M/s. Baba Mines and Minerals - a registered dealer on the rolls of the third respondent; the first respondent had again issued notice dated 13.05.2010 informing them that action was proposed to be initiated, under the Revenue Recovery Act, for recovery of tax arrears of the defaulting dealer i.e., the fourth respondent; and they had replied thereto, by letter dated 29.05.2010, that they were not responsible for the tax arrears of the defaulting dealer, they had purchased the land under a bonafide belief and without being aware of any tax arrears allegedly due to the department from the defaulting dealer, and that further proceedings be dropped.

In the counter-affidavit filed by the first respondent, it is stated that the fourth respondent is an assessee, under the provisions of the A.P. VAT Act, on the rolls of the third respondent; it was a partnership firm consisting of four partners, and was carrying on business in mines and minerals; they fell in arrears of tax, pursuant to the assessment order made under the AP VAT Act, for the years 2005-06 – Rs.3,53,828/-; 2006-07 – Rs.7,46,958/- and 2007-08 – Rs.42,686/-; the total arrears of tax due from them was Rs.11,43,468/-; despite several notices, the fourth respondent did not respond and pay the arrears of tax; the fourth respondent has immovable property in Survey No.307/2 and 308/2 of Errabelligudem Village, Nellikuduru Mandal of Warangal District; in order to recover the tax dues, the subject immovable property was attached under the provisions of the A.P. Revenue Recovery Act; Form-IV was issued by the Deputy Commercial Tax Officer, Mahaboobabad Circle, who has territorial jurisdiction over the said land; pursuant to issuance of Form-IV notice, the fourth respondent paid Rs.1,00,000/-; subsequently Form-V notice was also issued and, pursuant thereto, the fourth respondent paid another Rs.1,00,000/-; thus the fourth respondent had paid Rs.2,00,000/-, leaving tax arrears of Rs.9,43,468/-unpaid; while these arrears were due and payable by them, the fourth respondent had sold the subject property to th