TaxTMI 
TaxTMI 
2016 (8) TMI 802
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng for the issuance of a writ of certiorari to quash the attachment notice dated 28.8.2006, issued by the first respondent, attaching the petitioner's property for the Sales Tax due of M/s.Siva Shanmugam Chemicals Pvt. Ltd., Chennai. The undisputed facts are that the said company, namely, M/s.Siva Shanmugam Chemicals Pvt. Ltd., had committed default in payment of the loan amount, which was availed by them from the bankers, as a result of which, the bankers approached the Debts Recovery Tribunal and pursuant to the orders passed by the Debts Recovery Tribunal, the property owned by the company was sold to one Mr.P.Ashok Kumar and the certificate of sale dated 25.1.2005 was issued in favour of the said P.Ashok Kumar, which was registered ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... an identical set of facts, the order of attachment was set aside. Paragraph No.12 of the judgment is usefully extracted hereunder: "12. In the instant case, the property was sold by public auction on 10.03.2003. The sale was conducted in execution of the Recovery Certificates issued by the Debts Recovery Tribunal for recovery of dues to the City Union Bank. The appellants had paid the entire amount due on 25.3.2003 and the sale was confirmed in their favour on 23.4.2003. There is no indication of any sales tax arrears in the advertisement for auction sale and there was no application from any statutory or public authority seeking to set aside the sale. For the first time, by letter dated 25.6.2004, the Commercial Officer required the sec....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... sale under the SARFAESI Act. The First respondent's communication dated 24.12.2008 to the Third Respondent-Bank reads as follows: "The Sub-Registrar, Virugambakkam has issued an Encumbrance Certificate on 24.12.2008 with the Commercial Tax Officer as one of the purchaser cannot claim the right on the said property." The aforesaid communication would show that the Encumbrance (tax arrears) Certificate was only reflected on 24.12.2008. Whereas the Encumbrance Certificate dated 15.5.2008 issued by the Sub-Registrar Office, Virugambakkam did not reflect any encumbrance except the Sale Ded dated 9.6.1998 and no claim of the First Respondent was reflected. The sale was conducted on 19.5.3008 and subsequent only the encumbrance of the Fi....