Automatic statutory charge for sales tax arrears overrides later purchase, and bona fide purchaser claims may need civil court remedies.

A property purchased after sales tax arrears had arisen and after the repayment schedule had begun remained subject to an automatic statutory charge under sections 24(1) and 24(2) of the Tamil Nadu General Sales Tax Act, 1959. The purchaser's plea of bona fide purchase was not accepted because no material was shown in writ proceedings to displace the revenue authority's case of prior liability and collusive transfer. The Court further held that a challenge to the charge and competing title claims could not be properly determined under Article 226 where civil remedies were available. The revenue authorities were therefore entitled to proceed with recovery against the property.

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Issues: Whether the purchaser, claiming to be a bona fide purchaser, could resist attachment and proposed auction of the property for sales tax arrears of the seller in writ jurisdiction.

Analysis: The property was purchased after the seller had incurred sales tax arrears and after the statutory repayment schedule had already commenced. On a joint reading of section 24(1) and section 24(2) of the Tamil Nadu General Sales Tax Act, 1959 and the repayment agreement, the Court treated the arrears as creating an automatic charge over the property. The purchaser did not establish, in writ proceedings, any material to displace the revenue authority's case of prior liability and collusive transfer. The Court also held that the claim of bona fide purchase and the challenge to the charge could not be properly adjudicated under Article 226 when the petitioner could work out remedies in civil court.

Conclusion: The claim of bona fide purchase was rejected, and the writ petition was not maintainable for defeating the revenue charge.

Final Conclusion: The revenue authorities were entitled to proceed against the property for recovery of sales tax arrears, leaving the petitioner to pursue civil remedies, if any.

Ratio Decidendi: A property subject to an automatic statutory charge for sales tax arrears can be proceeded against despite a subsequent sale, and a bona fide purchaser's challenge to that charge is ordinarily not adjudicated in writ jurisdiction when a civil remedy is available.

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