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TMI Blog2018 (10) TMI 1457X X X X Extracts X X X X X X X X Extracts X X X X ..... the possession by way of sale, mortgage, exchange or any other mode of transfer whatsoever of any of his property in favour of any other person with an intention of defrauding the Government revenue, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the dealer. This is not a case where property is transferred after any tax has become due from the dealer. In facts of the case, we are doubtful whether department can also sustain the allegation of such property having been transferred with an intention of defrauding the Government revenue. Sale of the property was a compulsory action initiated by the lending bank and was not an action of volition on part of the dealer. In the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered as a dealer under the Gujarat Value Added Tax Act ( VAT Act for short). M/s. Eco Green Paper Product Pvt. Ltd. defaulted in repaying the loans to the bank, upon which, the bank started recovery proceedings in terms of the Securitization and Reconstruction on Financial Assets and Enforcement of Security Interest Act, 2002 ('SARFAESI Act for short). After taking possession of the property notice for auction was published on 13.11.2017. Auction was conducted on 30.11.2017. The petitioner was the successful bidder and had offered the price of ₹ 8.15 crores for such property. The petitioner deposited the entire amount with the bank on 14.12.2017. 3. At the time of auction proceedings, VAT department had entered its cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esently created was entered only after the auction was completed, sale price deposited and sale was completed. This charge is not for any assessed dues but is only for possible dues that may arise upon completion of pending assessments. Section 47 of the VAT Act provides that where a dealer after any tax has become due from him creates a charge on or parts with the possession by way of sale, mortgage, exchange or any other mode of transfer whatsoever of any of his property in favour of any other person with an intention of defrauding the Government revenue, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the dealer. 6. For multiple reasons, the authority could not have acted un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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