https://www.taxtmi.com/caselaws?id=279742 A purchaser who acquired property for adequate consideration without actual or constructive notice of the vendor's sales tax liability was protected against recovery of the vendor's arrears. Applying the principles of actual and constructive notice under the Transfer of Property Act, the Madras HC noted that the business had closed before purchase, the encumbrance certificate showed no charge, and there was no material of collusion or intent to defeat revenue. The buyer was treated as a bona fide purchaser for value, so proceedings under the Revenue Recovery Act and Section 24-A of the Tamil Nadu General Sales Tax Act were unsustainable and the impugned notices and order were set aside. en-us Wed, 21 Feb 2018 00:00:00 +0530 Thu, 04 Apr 2019 06:34:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=279742 A purchaser who acquired property for adequate consideration without actual or constructive notice of the vendor's sales tax liability was protected against recovery of the vendor's arrears. Applying the principles of actual and constructive notice under the Transfer of Property Act, the Madras HC noted that the business had closed before purchase, the encumbrance certificate showed no charge, and there was no material of collusion or intent to defeat revenue. The buyer was treated as a bona fide purchaser for value, so proceedings under the Revenue Recovery Act and Section 24-A of the Tamil Nadu General Sales Tax Act were unsustainable and the impugned notices and order were set aside. Case-Laws VAT and Sales Tax Wed, 21 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=279742