9911796707
TMI Blog2021 (3) TMI 1238X X X X Extracts X X X X X X X X Extracts X X X X ..... have auctioned the immovable property of the Government of Tamil Nadu. The 3 rd respondent/Spinning Mill was merely a permissive user of the land - Therefore, the entire exercise carried out by the Commercial Tax Department in respect of property belonging to the Government represented by the District Revenue Officer, Vellore District itself was without any basis. In any event, the auction that was conducted on 06.12.2006 has been cancelled by the territorial Assistant Commissioner of Commercial Tax Department. The amount that was paid by the petitioner was also sought to be refunded back. The petitioner however declined to receive the amounts hoping that the petitioner would succeed in the writ proceedings which have been initiated since 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res. 3. The land in question measuring about 49.51 acres was given for use to the 3 rd respondent/Spinning Mill by the Government of Tamil Nadu under a registered agreement vide Document No.92/1964 dated 05.06.1965. Important terms and conditions of the said Registered Agreement vide Doc.No.92/1964, is reproduced below:- 3. The terms upon which the said land shall be held by the Mills are: a) that the land shall be used for construction of factory and building for a Spinning Mills to be run by it; b) that the Mills shall pay to the Government annually the appropriate assessment or ground-rent as the case may be, on the lands which shall be liable to revision at any general revision of the land revenue settlement; c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovements at the time of resumption. If there are buildings on the land which the Government do not require, the Mills shall remove them at its cost. e) The Government shall have the right to resume the land if the Mills does not use the land for the purpose for which it was acquired within a period of one year or such further extended period as may be permitted by the Government to be reckoned from the date on which the Mills was placed in possession of the land. 4. The auction in question was conducted on 06.12.2006 pursuant to an auction notice issued by the 2 nd respondent/Assistant Commissioner (CT) on 20.12.2006. The 1 st respondent/Deputy Commissioner, however, by the impugned order dated 20.12.2006, set aside the auction in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in favour of the petitioner. It is further stated that none of the grounds which were raised now at the time of hearing is based on the Agreement dated 05.06.1965 signed between the District Revenue Officer and the General Manager, North Arcot, Vellore District Co-operative Spinning Mills Limited. It is submitted the basis on which the auction was cancelled was illegal and therefore in terms of the decision of the Hon'ble Supreme Court in Mahinder Singh Case, the impugned order cannot be sustained based on the reasons not given in the impugned order. The learned counsel for the petitioner therefore submits that the petitioner is entitled for the relief as prayed for. 7. Heard the learned counsel for the petitioner and the learned Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Commercial Tax Department under the provisions of the TNGST Act, 1959, the claim of the petitioner in respect of a land which did not belong to the 3 rd respondent/North Arcot District Co-operative Spinning Mill cannot be sustained even if the petitioner has other legal grounds to challenge the manner of cancellation of auction. 11. Since the amount of ₹ 1,35,00,000/- at the time of bid from the petitioner has not been refunded back to the petitioner, the Commercial Tax Department is directed to refund the said amount together with interest accrued thereon at the prevailing bank rates from time to time. The petitioner shall forward the account details to which the amounts has to be refunded back within a period of 30 days fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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