Statutory tax charge attaches only to property owned when liability arises, leaving later purchasers free of arrears.

Section 24 of the Tamil Nadu General Sales Tax Act, 1959 was construed as creating a statutory charge only over property owned by the assessee when the tax liability became due and default occurred. The charge did not extend to property acquired later, because the statute contained no express language bringing future acquisitions within its scope. As the assessee acquired the property after the relevant assessment years, and the petitioners purchased it thereafter, no charge had attached at the relevant time. The recovery notice against the petitioners was therefore unsustainable, and the writ petition was allowed.

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Issues: Whether the sales tax arrears of the original assessee could create a statutory charge on property acquired by him only after the assessments were completed and whether such property could be proceeded against in the hands of the subsequent purchasers.

Analysis: Section 24 of the Tamil Nadu General Sales Tax Act, 1959 was construed as creating a charge only on the property owned by the assessee when the tax liability became due and the assessment default occurred. The charging provision was held not to extend to properties acquired by the assessee at a later point of time, because the statute contained no indication that future acquisitions also stood charged. As the assessee had purchased the property long after the assessment years and the petitioners acquired it thereafter, no charge had attached to the property at the relevant time. On that basis, the purchasers took the property free from the sales tax arrears of the assessee.

Conclusion: The notice seeking to recover the arrears from the petitioners was unsustainable, and the writ petition was allowed in favour of the petitioners.

Ratio Decidendi: A statutory charge for tax arrears attaches only to property owned by the assessee at the time the charge arises and does not extend to property acquired subsequently in the absence of express statutory language.

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