1990 (10) TMI 343 - HC - VAT and Sales Tax

Summary

Issues Involved:
The appeal filed by the State Government and Additional Tahsildar and Sales Tax Officer against a judgment and decree regarding the transfer of suit property and recovery of sales tax.

Summary:
The appeal was admitted based on the substantial question of law regarding the transfer of suit property without notice of pending proceedings under the Sales Tax Act. The respondent filed a suit for a declaration of title to the property, which was decreed by the trial court and upheld on appeal. The property was originally owned by Kanhaiyalal, who later sold it to the respondent for valuable consideration. The State contended that the property could be auctioned for sales tax recovery, while the respondent argued that the transfer was not to defraud revenue and fell under an exception in the Act. The court noted that the transfer was for valuable consideration and not to defraud revenue, thus dismissing the appeal.

In the judgment, it was emphasized that the State failed to prove that the transfer was intended to defraud revenue, thus not falling under the relevant section of the Act. The court also highlighted that the transfer was for valuable consideration, meeting the requirements of the Act's proviso. The court upheld the lower courts' findings of fact, stating that the circumstances for challenging such findings were not present in this case. Consequently, the appeal was dismissed with no costs awarded.