TaxTMI 
TaxTMI 
2014 (8) TMI 1041
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....otice issued by the Official Liquidator and the sale was confirmed by this Court as per exhibit P2 order. As per exhibit P2 order, this court directed the official liquidator to execute the sale deed in respect of the property in favour of the petitioner and exhibit P3 sale deed was accordingly executed in their favour by the official liquidator on August 16, 2004. 2. According to the petitioner, they propose to establish an industrial unit in the property, for which clearances are required to be obtained from various authorities. It is stated by the petitioner in the writ petition that for the purpose of getting the clearances, they were asked to produce the possession certificate, location certificate and location sketch of the propert....
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....eneral Sales Tax Act and therefore, not binding on the State. 4. I have heard Sri Binoy Vasudevan, the learned counsel for the petitioner and the learned Government Pleader for the State. 5. The learned counsel for the petitioner pointed out that as far as a company in liquidation is concerned, the provision applicable for payment of taxes is section 530 of the Act, which provides that payment of taxes is subject to the provisions in section 529A of the Act and section 529A of the Act provides that notwithstanding anything contained in any other law, in the winding-up of the company, workmen's dues and debts due to the secured creditors shall be paid pari passu in priority to other debts. In other words, according to the learned c....
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....anding the sale of the property in accordance with the Act, the sales tax dues of the company in liquidation can be recovered from the property of the company. The said contention was repelled by this court. The relevant extracts of the judgment read thus (paras 17 and 24, pages 124, 125 and 128 in 72 VST): "12. . . . We are of the view that while it was indeed open to the State Legislature to enact section 26B giving first charge to the amounts due under the State Sales Tax Act, it cannot prevail when it comes into collision with the mandates of section 529A. It is section 529A which must prevail. In other words, it is not as if section 26B is any way void or of no use. Indeed it will have full force otherwise. But pit it....
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....ditors is indicated in the provisions contained in the Companies Act. They include sections 529A and 530 of the Act. The priority itself is to be decided by the company court under section 446(2)(d). If the State is allowed to proceed against the property, despite the sale held as free of encumbrances, the result would be that the sale would become vulnerable and it would also be against what had been held out to the auction purchaser under the aegis of the company court that the sale is being held free of encumbrances. Having regard to the provisions contained in sections 529A and 530, the intention is clear that the law of land is that the claim of the State must with regard to the amounts due as taxes be subject to the amounts due to the....