https://www.taxtmi.com/caselaws?id=444644 A bona fide auction purchaser of secured immovable assets was held not liable for the original lessee's business-related State tax dues where the auction covered only the industrial plots and not the business undertaking. The Court found that undisclosed encumbrances known to the secured creditor had to be disclosed in the sale notice, so a post-auction condition could not later fasten hidden liabilities on the purchaser. It also held that the State could not enforce the lessee's tax dues against the purchaser when secured creditors had statutory priority and the authorities had not taken timely recovery steps under the VAT regime. The impugned condition was quashed and the purchaser's rights were protected. en-us Fri, 01 Sep 2023 00:00:00 +0530 Fri, 20 Oct 2023 15:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=444644 A bona fide auction purchaser of secured immovable assets was held not liable for the original lessee's business-related State tax dues where the auction covered only the industrial plots and not the business undertaking. The Court found that undisclosed encumbrances known to the secured creditor had to be disclosed in the sale notice, so a post-auction condition could not later fasten hidden liabilities on the purchaser. It also held that the State could not enforce the lessee's tax dues against the purchaser when secured creditors had statutory priority and the authorities had not taken timely recovery steps under the VAT regime. The impugned condition was quashed and the purchaser's rights were protected. Case-Laws VAT and Sales Tax Fri, 01 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=444644