Post-sale tax charge on auctioned property invalid where no assessed dues existed and no prior provisional attachment was made.

A post-sale tax charge over property sold by a secured creditor in auction could not be sustained under the Gujarat VAT Act where the charge was entered only after completion of the sale and was linked to possible future dues from pending assessments, not tax already assessed and due. Section 47 did not apply because the transfer was not made by the dealer after tax had become due with intent to defeat revenue. In the absence of any prior provisional attachment under section 45, the department could not retrospectively fasten a charge on the auctioned property, and the charge was directed to be removed.

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Issues: Whether the charge created by the tax department over the auctioned property after completion of the secured creditor's sale could be sustained under the Gujarat Value Added Tax Act.

Analysis: The property was sold by the lending bank in enforcement proceedings after the borrower had defaulted, and by the time of auction and completion of sale, only a nominal amount remained outstanding, which was also paid. The impugned charge was entered only after the auction was over and was based on possible future dues arising from pending assessments, not on any tax already assessed and due. On these facts, section 47 could not be invoked, since the transfer was not one made by the dealer after tax had become due with an intention to defraud revenue. The department could have considered provisional attachment under section 45, but no such order had been passed before the auction or thereafter.

Conclusion: The charge was illegal and was directed to be removed.

Ratio Decidendi: A post-sale revenue charge cannot be sustained under the provision voiding transfers made after tax has become due to defeat revenue, and in the absence of a prior provisional attachment, the department cannot retrospectively secure possible future tax dues against an auction purchaser.

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