9911796707
TMI Blog2019 (8) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... al of Section 42 of TNVAT Act reveals that when tax is not paid by a dealer, the penalty shall immediately became a charge on the properties or persons, who are liable to pay the tax or penalty under this Act. There is also no disputation that with regard to said AYs, for assessment years 2007-08 and 2008-09, deemed assessment happened on 30.06.2012 and with regard to assessment year 2014-15, deemed assessment happened on 31.10.2015. Therefore, on 30.06.2012 qua assessment year 2007-08 and 2008-09 and on 31.10.2015 qua the assessment year 2013-14, there was a charge on the said property - From a perusal of Section 26 of TNVAT Act, it becomes clear that writ petitioner, who is a legal heir of the dealer under TNVAT Act, is now holding immova ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the proceedings are pursuant to tax liability, penalty for the assessment years 2007-08, 2008-09 and 2014-15 ('said AYs' for brevity) under 'Tamil Nadu Value Added Tax Act, 2006 (Tamil Nadu Act 32 of 2006)', which shall hereinafter be referred to as 'TNVAT Act' for the sake of convenience and clarity. According to the impugned auction notice, the tax liability is ₹ 14,35,376/- and penalty is ₹ 18,06,430/- totalling ₹ 32,41,806/-. 4. It is the case of the writ petitioner that writ petitioner came to know about the impugned auction notice on 26.07.2019, when an official attached to the office of the first respondent went over to the residence of the writ petitioner and pasted the impugned aucti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... outstanding on the date of the default shall become immediately due and shall be a charge on the properties of the person or persons liable to pay the tax or penalty or interest under this Act.' 9.Section 43 of TNVAT Act reads as follows: 43. Transfers to defraud revenue void.- Where, during the pendency of any proceedings under this Act or after the completion thereof, any dealer creates, a charge on, or parts with the possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever of any of his assets in favour of any other person, with the intention to defraud the 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 as a res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purposes of this Act and the provisions of this Act shall apply to him in respect of the business of the said deceased dealer, provided that, in respect of any tax or fee assessed as payable by any such dealer or any tax, or fee which would have been payable by him under this Act as if he had not died, the executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hands.' 12. From a perusal of Section 26 of TNVAT Act, it becomes clear that writ petitioner, who is a legal heir of the dealer under TNVAT Act, is now holding immovable property i.e., said property of the dealer. The transfer is from father to son by way of a settlement. 13. Learned Additional Government P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t said property was offered as a security to the respondent. 17. Therefore, the argument predicated on Sections 39(4) and 39(5) pales into insignificance. 18. Learned Revenue counsel also pointed out that the transfer is by way of a Settlement Deed from father to his son and therefore, it is clearly with the intention to defeat the interest of the Revenue. This has also weighed in the mind of this Court. Another aspect, which has weighed in the mind of this Court is that though the writ petitioner, even on his own volition states that he got knowledge about the impugned auction on 26.07.2019 itself, has chosen to file the instant writ petition only on 06.08.2019 (Yesterday), the matter was on Board in admission list today, when the auctio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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