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TMI Blog2021 (7) TMI 1206X X X X Extracts X X X X X X X X Extracts X X X X ..... he years 2000-2001 and 2001-2002, is sought to be recovered by issuing notice to the third party purchaser of the property in the year 2012. Thus, there is a blatant lapse on the part of the Competent Authorities of the Commercial Tax Department in pursuing the matter for recovery of arrears of sales tax - In the present case, undoubtedly, the second respondent was aware of the proceedings, which were pending before the first respondent. However, he sold the property in the year 2006 probably on the impression that no action was taken by the first respondent for more than six years regarding the sales tax arrears due for the years 2000-2001 and 2001- 2002. Ultimately, the delay caused at the instance of the first respondent- Department is the reason for loss of revenue to the State. It is in the public domain that large scale and wider allegation of corrupt activities, more specifically, in Department like Commercial Tax Department, are prevailing and, people are lamenting about the corrupt activities in collusion with the traders at large in the State. However, no measures are taken to minimise such corrupt activities of the Commercial Tax Department officials with the traders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 years for the sales tax arrears due and six years after the purchase of the subject property by the petitioner. 5. The petitioner, at the time of execution of sale, paid the sale consideration and on verification of the encumbrance certificate, found that there was no charge created and accordingly, purchased the property. Thus, the interest of the bona fide purchaser is to be protected. 6. It is contended that there was a failure on the part of the first respondent in initiating action to recover the sales tax arrears, within a reasonable period of time. Now after a lapse of six years from the date of purchase of the subject property by the petitioner, impugned notice was issued and therefore, the said notice is liable to be set aside. 7. The learned Government Advocate, appearing on behalf of the first respondent, made a submission that from the year 2006 onwards, several letters were communicated to the second respondent/defaulter and there was no proper response from the second respondent/defaulter. Finally, the first respondent has initiated action under the Revenue Recovery Act and issued notice, directing the petitioner to pay the sales tax arrears, within a perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aud 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 result of the completion of the said proceeding or otherwise . 12. However, Section 24-A further contemplates 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 . Therefore, the sale made for adequate consideration and without notice of pendency of such proceedings, then such sale shall not be void. 13. In the present case, undoubtedly, the second respondent was aware of the proceedings, which were pending before the first respondent. However, he sold the property in the year 2006 probably on the impression that no action w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls, as they are indulging in demand and acceptance of freebies openly from the business community. Much more freebies and corrupt activities are openly witnessed by the people in general during the festival seasons. It is akin to that of getting mamul by the Police Department officials and this Court dealt with the practice of mamul by the police in a writ petition in the case of N.Ulagaraj vs. Secretary to Government and Another [pronounced on 05.10.2020 in WP(MD) No.16185 of 2012]. 19. The evil menace of demand and acceptance of freebies in large scale in a routine manner are causing loss to the State revenue, as these corrupt officials are failing in their duties, to initiate appropriate actions against the illegalities prevailing amongst the traders, businessmen etc. Thus, the higher officials are bound to monitor these aspects effectively and efficiently, so as to control the menace and deal with such officials in a hard manner without showing any misplaced sympathy. 20. Decent amount of salary has been paid to the Government officials. The salary paid by the Government is, undoubtedly, more competitive than that of the salary being offered by the private players. By vir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n or actions are taken belatedly after efflux of time regarding collection of tax or arrears of tax and initiate appropriate actions against all the officials, who all are responsible and accountable for such lapses, negligence or dereliction of duty. If the misconduct or otherwise is proved, then further actions are to be initiated to recover the loss of State revenue from those officials; (3) The respondents are directed to coordinate with the Department of Vigilance and Anti Corruption by conducting frequent surprise raids to control the evil menace of corrupt activities of demand and acceptance of bribe or receipt of freebies from the business community across the State of Tamil Nadu. If any such offenses are identified, then all actions, including criminal action, are to be initiated under the relevant laws; (4) Respondents 3 and 4 are directed to issue suitable orders to all the Authorities Competent to verify the service records of the officials of the Commercial Tax Department and make a comparison with the actual assets of the family members as well as the declared assets in the service records and if any disproportionality of wealth is identified, all suitable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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