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N THE HIGH COURT OF JUDICATURE AT MADRAS
R.Suresh Kumar, C.Saravanan
T.Palanisamy, S/o.Thangavelu – Appellant
Versus
Commercial Tax Officer, Commercial Tax Department – Respondent
| Table of Content |
|---|
| 1. the case concerns the tax liabilities associated with properties bought from a defaulter. (Para 1 , 2 , 3 , 4 , 5 , 7) |
| 2. it addresses purchasers' rights under the tngst act regarding liabilities. (Para 8 , 9 , 10 , 11 , 12) |
| 3. the court confirms the need for the petitioner to establish valid claims in a civil suit. (Para 15 , 16 , 19 , 30) |
| 4. emphasizes that sales by a defaulting tax assessee are void ab initio. (Para 22 , 25 , 26 , 31) |
ORDER :
C. SARAVANAN, J.
1. The petitioner has challenged the Impugned Communication/Order dated 07.01.2015 issued by the 1st respondent.
2. By the Impugned Communication dated 07.01.2015 addressed to the petitioner, the petitioner has been called upon to pay tax and interest upto 07.01.2015 of Rs.6,64,011/- (Tax of Rs.1,25,102/- and interest of Rs.5,52,814/-). Relevant portion of the Impugned Communication/Order dated 07.01.2015 issued purportedly under Section 24 -A of Tamil Nadu General Sales Tax (TNGST) Act, 1959, reads as under:-
“It was learnt that, you have purchased the immovable properties of the defaulters situated at Sy.No.55/1B, while pendency of charges, transfer of immovable, Pagalapalli Village, Dharmapuri Taluk and Distri
Transfers made by a defaulting taxpayer are void; bona fide purchasers must establish their claims through a civil suit under the TNGST Act.
A bona fide purchaser without notice of an encumbrance is protected under Section 24-A of the TNGST Act, 1959, reinforcing the importance of constructive notice criteria.
The court affirmed that earlier registered charges of financial corporations take precedence over later sales tax claims, emphasizing the significance of prior registration dates in determining legal....
The financial institution's charge takes precedence over tax claims due to earlier registration, establishing the priority of charges in property disputes.
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 ....
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