Sales tax arrears charge cannot override bona fide purchaser protection when statutory recovery and attachment procedure is not strictly followed.

A statutory charge for sales tax arrears does not defeat the title of a bona fide purchaser without notice where the transfer is for consideration and not made to defraud revenue. The revenue's priority under the Tamil Nadu General Sales Tax Act operates subject to the recovery and attachment procedure under the Tamil Nadu Revenue Recovery Act, and strict compliance with public notice, affixation, and timely recovery steps is required. As the property had passed through an innocent chain of title and the prescribed procedure was not properly followed, the attachment was held unsustainable against the purchaser.

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Issues: Whether sales tax arrears of the original defaulter could be enforced against property purchased by a bona fide transferee without notice, and whether the revenue authorities had complied with the statutory procedure for recovery and attachment.

Analysis: Section 24(1) of the Tamil Nadu General Sales Tax Act, 1959 creates a charge on the defaulter's property for unpaid tax, and Section 24(2) gives the dues priority over other claims, but recovery as land revenue must follow the procedure under Sections 26 and 27 of the Tamil Nadu Revenue Recovery Act, 1864. The statutory scheme is reinforced by Section 24-A, which voids transfers made to defraud revenue, while protecting transfers for consideration without notice. The property had passed through a bona fide chain of title, and the records showed that the attachment procedure was not scrupulously followed: public notice, affixation on the land, and timely recovery steps were not taken before the petitioner acquired title.

Conclusion: The property could not be proceeded against in the hands of the petitioner, and the attachment was unsustainable.

Final Conclusion: The statutory charge in favour of the revenue did not override the protection available to an innocent purchaser, and non-compliance with the prescribed recovery procedure rendered the attachment invalid.

Ratio Decidendi: A statutory charge for sales tax arrears cannot be enforced against property in the hands of a bona fide purchaser without notice unless the revenue authority strictly follows the prescribed recovery and attachment procedure.

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