Bona fide purchaser protection bars later attachment of property for sales tax arrears when no charge existed at purchase.

A later notice and attachment for recovery of sales tax arrears cannot be enforced against a bona fide purchaser who bought the property by registered sale deeds before any attachment or encumbrance existed. Where the property was free from charge at the time of purchase and the purchaser had no notice of the defaulter's arrears, the tax authorities cannot proceed against that property for the seller's liability. On that basis, the notice and consequential attachment were held unsustainable against the purchaser.

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Issues: Whether a notice and consequential attachment issued for recovery of sales tax arrears from the property purchased by the petitioner could be enforced against a bona fide purchaser who acquired the property before any attachment or encumbrance was created.

Analysis: The petitioner purchased the property through registered sale deeds before the impugned attachment was made. The property was not under attachment on the dates of purchase, and the petitioner was treated as a bona fide purchaser for valuable consideration without notice of any charge. A later attachment cannot bind such a purchaser. The earlier decisions relied upon support the principle that, where there is no charge on the property and the purchaser had no notice of the arrears, the sales tax authorities cannot proceed against the property in the hands of the purchaser for the defaulter's liability.

Conclusion: The notice and the consequent attachment were unsustainable and could not be enforced against the petitioner.

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