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of <h1>Court protects bona fide purchaser rights in Sales Tax dispute</h1> <h3>Hema Engineering Industries Ltd. Versus The Assistant Commissioner, SAS Autocom Engineers India Pvt. Ltd.</h3> Hema Engineering Industries Ltd. Versus The Assistant Commissioner, SAS Autocom Engineers India Pvt. Ltd. - TMI Issues involved:1. Maintainability of the Writ Petition challenging a notice issued by the 1st respondent regarding arrears of Sales Tax and property purchase.2. Validity of the notice issued by the 1st respondent under the Revenue Recovery Act.3. Rights of a bona fide purchaser in cases of tax arrears on the property purchased.4. Jurisdiction of the court to entertain a Writ petition despite the availability of alternative remedies.Issue 1: Maintainability of the Writ PetitionThe petitioner challenged a notice issued by the 1st respondent regarding arrears of Sales Tax and the purchase of property owned by the 2nd respondent. The Government Advocate raised a preliminary objection on the maintainability of the Writ Petition, arguing that the notice was not sufficient grounds for the petition. However, the court noted that if the notice violated statutory provisions or lacked jurisdiction, the Writ petition could be entertained. The court referred to previous cases to support the petitioner's claim, emphasizing that subsequent attachments made after the property purchase could not bind the petitioner.Issue 2: Validity of the notice under the Revenue Recovery ActThe court analyzed the notice issued by the 1st respondent under the Revenue Recovery Act, highlighting that the encumbrance on the petitioner's property was made after the property purchase. Citing legal precedents, the court emphasized that a bona fide purchaser without notice of the tax charge could not be held liable for the defaulter's arrears. The court further clarified that the lack of a charge on the property and the petitioner's bona fide purchase through registered sale deeds supported the quashing of the notice.Issue 3: Rights of a bona fide purchaserThe court compared the petitioner's case to previous judgments to establish that the petitioner, as a bona fide purchaser for valuable consideration without notice of the tax arrears, was not liable for the defaulter's debts. The court emphasized that the absence of an attachment on the property at the time of purchase protected the petitioner from subsequent actions by the 1st respondent.Issue 4: Jurisdiction of the courtDespite the availability of alternative remedies, the court justified entertaining the Writ petition due to the violation of statutory provisions and lack of jurisdiction in the notice issued by the 1st respondent. The court ordered the quashing of the notice and directed the 1st respondent to lift the attachment on the property purchased by the petitioner. The court affirmed the petitioner's rights as a bona fide purchaser and allowed the 1st respondent to proceed against the defaulter in accordance with the law.
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