2016 (11) TMI 810 - HC - VAT and Sales Tax

Attachment of property - whether the petitioner was diligent enough before the purchase of the properties and as to whether they verified the sales tax dues and other statutory dues, which are payable to the Government? - Held that - In any event, since the petitioner states that they did not have the copies of any of the documents, this Court is inclined to direct the first respondent to furnish the copies of assessment orders for the relevant assessment years. It is made clear that this Court has not expressed any opinion on the validity of the assessments. However, on the grounds raised by the petitioner, this Court cannot set aside the recovery notice nor lift the attachment of the properties or property at this juncture. It is open to the petitioner to work out their remedies in a manner known to law after receipt of the copies of the documents from the Department - petition disposed off.

Summary

Issues:
Challenge to encumbrance certificate and property attachment for dues payable to respondent Department.

Analysis:
The petitioner challenged an encumbrance certificate and property attachment by the respondent Department due to dues payable. The petitioner claimed lack of communication regarding assessment orders to their vendor's vendor, leading to difficulties post becoming a 100% shareholder. The Court emphasized the petitioner's responsibility to verify dues before property purchase, not being concerned with past litigations. The petitioner's lack of records and unclear communication regarding assessment proceedings were noted.

The Additional Government Pleader presented evidence showing the petitioner's authorized signatory received notices during relevant times. The Court found it doubtful that assessment orders were not communicated to the petitioner, directing the first respondent to provide copies of assessment orders for relevant years within two weeks. The Court clarified it did not assess the validity of assessments but could not set aside the recovery notice or lift property attachment based on the petitioner's grounds alone.

In conclusion, the writ petitions were disposed of with directions for the first respondent to provide assessment order copies. The Court advised the petitioner to pursue legal remedies after receiving the documents. No costs were imposed, and the related WMPs were closed.