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TMI Blog2022 (9) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... ch as identification of the properties of a defaulting assessee, communication with the assessee concerned in that regard, issuance of a notice of attachment in statutory form, communication of the attachment to the sub-registrar concerned for creation of charge and ensuring that the encumbrance certificate reflects such charge. The respondent officials, have not, in the present case, engaged in any of the acts as aforesaid or taken any precautions to secure the interests of the revenue. Mere reference to Section 24-A is insufficient to protect the interests of the Department and enforcement of the demands can be proceeded with only if the assets have been attached in the first place - In the present matter, as in so many others, there h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty admeasuring 2 acres and 52 cents, comprised in Old Survey Nos.472/1 472/9 and (New Survey Nos.472/1D1 and 472/9A) situated at Mukundarayapuram Village, Ranipet, Walaja Taluk, Vellore District and the property measuring an extent of 39520 sq. ft., comprised in Survey No.62, Korai Village, bearing Plot Nos. 117 118, SIDCO Industrial Estate, SIPCOT, Ranipet, Vellore District (properties/properties in question). 2. The sequence of relevant dates and events to decide the writ petition are set out as follows: (i) The properties in question were owned by one, Anusha International Limited, hereinafter referred to as assessee and assessed to tax under the provisions of the Tamil Nadu General Sales Tax Act, 1956 (in short 'Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hase thereof. (ix) Encumbrance certificate dated 05.09.2011 issued by the Sub- Registrar, Walaja is placed on record, revealing that, at the time of purchase of the properties by the petitioner, no charge had subsisted in regard to the same, either at the instance of the Commercial Taxes Department or any other authority for that matter. Patta has been issued by the Revenue Authority on 18.10.2012. (x) While this is so, the petitioner required additional funds for the purposes of its business and thus approached State Bank of India (SBI) for raising the funds. (xi) SBI has sought verification of the title documents for which purpose R4 had been approached. It was at this juncture that the Commercial Taxes Department appear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to which they are relevant, are extracted below: Section 24. Payment and recovery of tax: (1) Save as otherwise provided for in sub-section(2) of section 13, the tax assessed or has become payable under this Act from a dealer or person and any other amount due from him under this Act shall be paid in such manner and in such installments, if any and within such time as may be specified in the notice of assessment, not being less than twenty-one days from the date of service of the notice. The tax under sub-section (2) of section 13 shall be paid without any notice of demand. In default of such payments the whole of the amount outstanding on the date of default shall become immediately due and shall be a charge on the properties of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se. Section 24 of the Act sets the stage for the raising of a valid demand. To invoke the protection afforded by Section 24-A, the revenue must engage in some constructive act, such as identification of the properties of a defaulting assessee, communication with the assessee concerned in that regard, issuance of a notice of attachment in statutory form, communication of the attachment to the sub-registrar concerned for creation of charge and ensuring that the encumbrance certificate reflects such charge. 7. The respondent officials, have not, in the present case, engaged in any of the acts as aforesaid or taken any precautions to secure the interests of the revenue. Mere reference to Section 24-A is insufficient to protect the interests ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t provision is intended to protect bonafide purchases, where a purchase of a property has been made for adequate consideration and where the owner of the property was unaware of the pendency of sales tax proceedings in its/his case. 12. The burden thus rests upon the revenue to establish that the consideration for the property is inadequate, that the vendor had due notice of the pendency of the sales tax proceedings and the transfer itself, was a measure to evade tax. In the present case, the parties, that is, the petitioner and the defaulting assessee are admittedly unrelated and the transaction of purchase is bonafide. 13. Section 24A is also inapplicable in the present case, since the sale transaction was in the year 2010 and a mer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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