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Job G. Oommen – Appellant
Versus
Union Of India, Represented By Its Secretary To The Government, Department Of Finance, 128-A/North Block, New Delhi – Respondent
JUDGMENT :
Harisankar V. Menon, J.
These connected writ petitions are pertaining to certain properties of an assessee under the provisions of the Income Tax Act, 1961 (for short, the ‘I.T. Act’), presently in the ownership and possession of the petitioners herein, pursuant to an auction sale of those properties for realization of some arrears payable by the original owner (assessee) under the provisions of the Kerala General Sales Tax Act, 1963 (for short, the ‘KGST Act’) and the Cashew Workers Welfare Fund dues.
2. One late P.N.Madhavan Pillai was the proprietor of M/s.Mohandas Cashew Factory, Arakkal, Kollam District. He was an assessee under the provisions of the KGST Act and had arrears in excess of Rs.58 lakhs for the period from 1995 onwards. He was also in arrears with respect to Cashew Workers Welfare Fund dues for the period from 1997 to 2000. For the realization of the afore amounts, revenue recovery proceedings were initiated under the provisions of the Revenue Recovery Act, 1968 (for short, ‘RR Act’), and an extent of 78.30 Ares of his property was attached. Out of the afore property, an extent of 28.32 Ares of land were auctioned on 30.08.2006 in favour of one Smt.Sushama
The Income Tax Department cannot claim properties auctioned under the KGST Act for tax dues, as the KGST Act establishes a first charge on such properties.
The main legal point established in the judgment is that the Surat Municipal Corporation cannot claim any first charge or precedence over the subject property for recovering property tax arrears, as ....
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Bank is entitled only for a priority in payment alone, it can never be said to be a charge created over property against statutory charge contained under KGST Act, 1963 and KVAT Act, 2003 or any Cent....
The court affirmed the validity of Section 16-B of the HPGST Act, ruling that it cannot be invalidated without proper adjudication of tax liability against prior secured interests.
The main legal point established in the judgment is that under the SARFAESI Act, the petitioner was not liable to pay any additional differential premium and the Sales Tax Department could not claim ....
Point of Law : Excise duty - Proviso to section 11 refers to transfer or disposal of business or trade in whole or in part. It does not refer to the transfer or disposal of mere assets – Proviso not ....
The main legal point established in the judgment is that the charge of the Secured Creditor will precede over the charge of an Unsecured Creditor (Crowns Date) based on the provisions of the SARFAESI....
Auction purchasers under the SARFAESI Act cannot be held liable for the previous owner's tax liabilities unless explicitly stated in the sale notice.
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