2021 (3) TMI 604 - HC - VAT and Sales Tax

Recovery of dues of deceased dealer - The immovable property sought to be put to auction is of the ownership of the mother of the deceased dealer and it is not the estate of the deceased - Section 57 of the Gujarat Value Added Tax Act, 2003 - notice of demand under Section 42 of the GVAT Act, 2003 read with Rule 61 of the Rules - HELD THAT - There is nothing to indicate that the immovable property in question is the estate of the deceased. There is nothing to even indicate that the deceased dealer was the joint owner or a co-owner of the property in question. However, with a view to give one opportunity to the learned AGP to meet with the aforesaid two arguments of the learned counsel appearing for the writ applicant, we grant one week time to Mr. Utkarsh Sharma. On the next date of hearing, Mr. Sharma shall point out to the Court in what manner the property in question is the estate of the deceased and whether any notice of demand under Section 42 of the GVAT Act, 2003 read with Rule 61 of the Rules has been issued at any point of time, in accordance with law. Post this matter for final hearing on 15.03.2021 on top of the Board. Till the next date of hearing, the respondents shall maintain status quo as regards the nature, character and possession of the property in question.

Summary

Issues:
1. Invocation of Section 57 of the Gujarat Value Added Tax Act, 2003 for recovering dues of a deceased dealer.
2. Requirement of a notice under Section 42 of the GVAT Act for invoking Section 57.
3. Determination of whether the property in question is the estate of the deceased dealer.

Analysis:
Issue 1: The petitioner argued that Section 57 of the GVAT Act could not be used to recover dues of the deceased dealer as the property to be auctioned belongs to the deceased dealer's mother, not the deceased estate. The Court noted the absence of evidence indicating the property as part of the deceased's estate.

Issue 2: The petitioner further contended that a notice under Section 42 of the GVAT Act, as per Rule 61, is a prerequisite for invoking Section 57. Without such a notice, the auction notice under Section 152 of the Gujarat Land Revenue Code would be invalid. The Court granted time for the respondent to address these arguments and provide clarification on the property's status and the issuance of a demand notice.

Issue 3: The Court scheduled the matter for final hearing and instructed the respondent to maintain the status quo regarding the property until the next hearing. The respondent was directed to demonstrate how the property is linked to the deceased dealer's estate and whether the necessary notice under Section 42 had been issued, citing relevant legal precedents for guidance.

This judgment highlights the importance of procedural requirements and evidence in matters of recovering dues from deceased dealers, emphasizing the need for legal compliance and clarity in establishing the deceased's association with the property in question.