9911796707
TMI Blog2017 (2) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... ge, the Sales Tax Officer has called upon the Corporation to satisfy the sales tax dues first and as such, the contention of the petitioner that the sales tax liability can be realized from the opposite party no.4, is not worthy to be accepted - petition dismissed - decided against the petitioner. X X X X Extracts X X X X X X X X Extracts X X X X ..... balpur to pay the sales tax dues from the petitioner's account and attach the Bank account of the petitioner. According to the petitioner, the liability of arrear tax can be fastened on the dealer and on transfer of the ownership of the units of the dealer, the transferee becomes liable for arrear tax. The provisions contemplated under Section 19 of the Orissa Sales Tax Act clearly provide that the transferor of ownership of the business and the transferee are liable to pay the arrear sales tax. The provision under Section 19(b) indicates that where the business in respect of which tax is payable is carried on by or in charge of any trustee, tax shall be recoverable from the trust. On this background, this writ application has been filed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial concern. It was purchased by M./s.Sreeram Extractions (Pvt.) Ltd., at the time of taking over the industrial concern under Section 29 of the Act, there was liability of sales tax upon M/s. Indo-East Extraction Pvt. Ltd. The Corporation sold the aforesaid unit in exercise of power conferred under Section 29 of the Act. The Commercial Tax Authorities had issued notice to the Corporation calling upon it to discharge the liability of the defaulter towards sales tax. The Corporation not having exceeded to its request and not having responded to the notice, the Commercial Tax Officer, Bhadrak Circle issued a notice calling upon the Corporation to credit the Sales Tax Officer the dues of ₹ 17,47,880/- being the demand for sales tax raise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ghts of the mortgagee even though the mortgage was first in point of time and accordingly, this Court has refused to interfere with the decision of the Sales Tax Officer by which demand of ₹ 17,47,880/- was directed to be paid by the Orissa State Financial Corporation in the Government treasury. 6. The fact of the case in hand is similar to the fact of the case in O.J.C No. 7796 of 1993 since in this case also the loan was advanced in favour of opposite party no.4 for establishing a rice mill after availing loan from the petitioner-Corporation, could not able to repay the loan dues, as a result of which the outstanding dues of the petitioner-Corporation has become ₹ 47,15,611.09 and when in spite of repeated notice issued from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to hold that the Corporation has converted into money assets over which the Crown has a first charge, the Sales Tax Officer has called upon the Corporation to satisfy the sales tax dues first and as such, the contention of the petitioner that the sales tax liability can be realized from the opposite party no.4, is not worthy to be accepted.
7. We, after taking into consideration the judgment rendered by this Court in OJC No. 7796 of 1993 basing upon which the Sales Tax authorities have taken action against the petitioner-Corporation, are not inclined to interfere with the decision as contained in the notice dated 5.4.2002 vide Annexure-1. Accordingly the writ application deserves no merit and the same is accordingly dismissed. X X X X Extracts X X X X X X X X Extracts X X X X
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