AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
1997 (6) TMI 354
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....d to it under section 15, Rajasthan Taxation Tribunal Act, 1995. 2.. It has been averred in the writ petition, in short, as follows. On October 18, 1989, the petitioner entered into an agreement (annexure 1) with M/s. Jai Food Industries for purchase of land and building for Rs. 11,41,000. On October 23, 1989, another agreement (annexure 1-A) was entered into in between them for the purchase of machinery for Rs. 1,61,000 and raw materials for Rs. 11,960. Dues of Rajasthan Financial Corporation (in short "RFC") and the State Bank of Bikaner and Jaipur (in short "SBBJ") to the extent of Rs. 44,400 and Rs. 2,70,542 (Rs. 2,09,205 + Rs. 61,337) respectively were outstanding against M/s. Jai Food Industries, Ajmer. Their movable and immovable p....
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....a certified copy of the proceedings of December 29, 1990 was made but no copy was issued. The petitioner was threatened by the respondent No. 2 for depositing the said amount. It has become difficult for the petitioner to carry on its business. 3.. The State of Rajasthan (respondent No. 1) and the Commercial Taxes Officer (the respondent No. 2) have filed their joint reply admitting that the petitioner has purchased the land, building, machinery and raw materials belonging to M/s. Jai Food Industries, Ajmer, with the dues of the RFC and SBBJ outstanding against the firm. It has further been averred thus: The business of M/s. Jai Food Industries, Ajmer had been purchased by the petitioner and is liable under section 9 and 11AAA of the Act t....
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....section 18 of the Act. 5.. It has been contended by the learned counsel for the petitioner that the petitioner had not purchased the business of M/s. Jai Food Industries, Ajmer, it bona fidely purchased its assets for valuable consideration without knowledge of the dues of the Commercial Tax Department and as such is not liable to pay the outstanding dues under sections 9 and 11AAA of the Act. He relied upon item No. 40 of 80 STC 12* (From Our Reporter at the Supreme Court). 6.. In reply, it has been contended by the learned counsel for the department that the petitioner was aware of the amount of tax outstanding against M/s. Jai Food Industries, Ajmer, when the building, machineries and raw materials belonging to M/s. Jai Food Industries....
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....ceedings: Provided that such charge or transfer shall not be void if made for valuable consideration and without notice of the pendency of proceedings under this Act." 9.. There is nothing on the record to show that the ownership of the entire business of M/s. Jai Food Industries, Ajmer was purchased by the petitioner. In the notice annexure 6, it is not stated that entire business of M/s. Jai Food Industries, Ajmer has been purchased by the petitioner. The agreements, annexures 1, 2 and 5, simply show that the building, machineries and raw materials were purchased by the petitioner. As such above quoted provisions of section 9 of the Act are not attracted in this case. Reference of Kanhaiya Lal v. State of Rajasthan [1992] 86 STC 30 (Raj....
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....eration and with notice of the amount of tax outstanding against M/s. Jai Food Industries, Ajmer. It is also not stated in it that this purchase was made with a view to defraud the Revenue. The shed of the factory of M/s. Jai Food Industries, Ajmer was leased out by the RIICO to the petitioner on February 12, 1990 vide agreement, annexure 5A, and other properties were sold to the petitioner by the RFC in pursuance of the agreement to sale dated December 15, 1990, annexure 5. As such the writ petition deserves to be allowed. 11.. Accordingly, the writ petition is allowed and the notice dated December 12, 1990 (annexure 6) is quashed. It is held that the assets of M/s. Jai Food Industries, Ajmer have been purchased by the petitioner with val....