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TMI Blog2020 (2) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... ken the trouble of registering the charge as was required under law. Therefore, the partner of the defaulting dealer took undue advantage and sold the assets unapologetically in a flagrant violation of the law. The petitioner purchased the property from the said person - Impugned notice calls upon the petitioner to pay for the arrears after a lapse almost four years from the date of purchase of the property shows negligence on the part of the Department in as much as the dealer was in arrears of tax from 2010 onwards. Whether the petitioner had indeed paid ₹ 40 lakhs to the vendor without notice of the charge which was created by operation of law or whether the sale was made to defeat the interest of the respondent or bonafide cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n was registered vide sale deed Document No.2659, dated 27.08.2002. 3. After the receipt of impugned order, the petitioner has sent a representation stating that the petitioner was not liable to pay tax as the petitioner is a bonafide purchaser of the property without notice of alleged charge created in favour of the respondent Commercial Tax Officer. In this connection, the learned counsel for the petitioner relied on the decision of the Hon'ble Full Bench of this Court in B.Suresh Chand Vs. State of Tamil Nadu and Another , 2006 SCC OnLine Mad 828. 4. Per contra, the learned Standing Counsel for the respondent submits that this writ petition was liable to be dismissed as the petitioner has an alternate remedy to challenge the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y tax, or any other sum payable by the dealer as a result of the completion of the said proceeding or otherwise: Provided that, such charge or transfer shall not be void if it is made- (i) For adequate consideration and without notice of the pendency of such proceeding under this Act or, as the case may be, without notice of such tax or other sum payable by the dealer; or (ii) with the previous permission of the assessing authority. Explanation- In this section, assets means land, building, machinery, plant, shares, securities and fixed deposits in banks to the extent to which any of the assets aforesaid does not form part of the stock-in-trade of the business of the dealer. 8. In this case, the respondent Commercial Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o perfect his title to the property. 11. The burden of proof as is required under the aforesaid provision can be established only in a civil court by filing a suit for a declaration and this would require a trial. As the courts exercising jurisdiction under Article 226 of the Constitution of India are not Civil Courts for the purpose of such determination, I am of the view that the present writ petition is liable to be dismissed. The petitioner has to perfect his title before a Civil Court and establish that his purchase was for adequate consideration and without notice. 12. Under these circumstances, I am inclined to dismiss the writ petition while giving liberty to the petitioner to approach a Civil Court within a period of 30 days ..... X X X X Extracts X X X X X X X X Extracts X X X X
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