ORDER :

The order dated 07.02.2018 passed by the first respondent regarding the payment of Sales tax arrears of M/s.Srinivas Real Estates is under challenge in the present writ petition.

2. The Additional Deputy Commercial Tax Officer-II, Puducherry, in the impugned order, has stated that No Objection Certificate [in short 'NOC'] is to be obtained for registering a property, in view of the fact that the respondents 2 and 3 are the defaulters and not paid sales tax as per the provisions of Puducherry Value Added Tax Act, 2007.[in short 'Puducherry VAT Act'].

3. The learned counsel for the writ petitioner contended that the petitioner is an agreement holder, entered into a sale agreement with the third respondent, which is the Partnership Firm on 22.12.2016 for the schedule mentioned property and the said properties are absolutely belongs to the third respondent Partnership Firm. The petitioner states that he has paid a sum of Rs.1,00,00,000/-(Rupees One Crore only) as an advance out of the total sale consideration of Rs.1,86,80,300/-(Rupees One Crore Eighty Six Lakhs Eighty Thousand and Three Hundred only) to the third respondent. However, the sale deed was not executed, in view of the fact that the first respondent insisted for getting NOC for registration of a sale deed as the third respondent has to pay the arrears of Rupees Twenty One Crores towards Revenue Recovery.

4. The learned counsel for the petitioner further states that he being an agreement holder, entered into a valid sale agreement by paying an advance amount and therefore, getting NOC would not arise at all. The petitioner is ready and willing to pay the balance sale consideration for the purpose of execution of sale deed and in view of the intervention by the first respondent, the agreement between the petitioner and the third respondent is unable to be executed. Thus, the petitioner is constrained to move the present writ petition.

5. The learned counsel for the petitioner reiterated that the petitioner is no way connected with the payment of arrears of commercial tax and as far as this property is concerned, he entered into an agreement with the third respondent and therefore, the order of the first respondent is in violation of the Principles of Natural Justice and thus, it is to be set aside and the petitioner may be permitted to pay the balance sale consideration for the purpose of execution of sale consideration in respect of the third respondent in his favour.

6. The learned Senior counsel appearing on behalf of the first and second respondent strenuously objected the contentions by stating that the third respondent / M/s.Srinivas Real Estates has to pay the arrears tax amount of Rs.3,75,33,655/-(Rupees Three Crore Seventy Five Lakhs Thirty Three Thousand Six Hundred and Fifty Five only] and the second respondent / M/s.Srinivas Build Tech(India) Private Limited, has to pay the tax arrears of Rs.46,81,12,988/-(Rupees Forty Six Crores Eighty One Lakh Twelve Thousand Nine Hundred and Eighty Eight only). The arrears to be paid as on 19.12.2020 and it is yet to be paid by the respondents 2 and 3. Therefore, the properties belongs to the respondents 2 and 3 are subject to statutory attachment by the first respondent and therefore, in the event of any sale by the respondents 2 and 3, NOC is to be obtained from the authorities competent of the Commercial Department, in view of the fact that there is a possibility of escape from the payment of arrears of tax by the respondents 2 and 3.

7. As per Section 37(1) of the Puducherry VAT Act, the Commercial Tax Department holds first charge over the property and therefore, the agreement entered into between the petitioner and the third respondent cannot be executed without obtaining NOC from the third respondent. Section 37(1) enumerates “the tax assessed under this Act shall be paid in such manner and in such instalments, if any, and within such time as may be specified in the notice of assessment, not being less than twenty-