Revenue records cannot retain tax encumbrances after a final sale confirmation and deletion order in auction proceedings.

Revenue authorities cannot retain Sales Tax and State Tax encumbrances in the 7/12 extract or mutation record after a competent forum has confirmed an auction sale, issued a registered sale certificate, and directed deletion of the charges. The Bombay HC noted that the DRT's deletion direction had not been challenged, and the Tahsildar had also rejected the departmental objection to the mutation entry without that order being assailed. The revenue record had therefore to conform to the final order of the competent authority, while the underlying MVAT-based claim was left open for action in appropriate proceedings.

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Issues: Whether the Talathi was justified in retaining the Sales Tax and State Tax encumbrances in the 7/12 extract and mutation record of the property purchased by the petitioner in auction, despite the unchallenged DRT order directing deletion of such charges.

Analysis: The property had been sold in DRT proceedings, the sale was confirmed, and a sale certificate was issued and registered in favour of the petitioner. The DRT had specifically directed removal of the charges from the revenue record. The Tahsildar also rejected the departmental objection to Mutation Entry No. 846, and that order was not challenged. In these circumstances, the revenue authorities were bound to give effect to the order of the competent forum and could not continue the charge in the 'other rights' column. The petitioner's request under Article 226 was confined to correction of the revenue entry, and the objection based on the departmental claim under the MVAT framework was left open for appropriate proceedings.

Conclusion: The retention of the Sales Tax and State Tax encumbrances was unjustified, and the writ petition was allowed to the extent of prayer clause (a).

Ratio Decidendi: A revenue authority cannot continue an encumbrance in the record of rights against an auction purchaser when the competent adjudicatory forum has confirmed the sale and directed deletion of the charge, and that order has attained finality.

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