TaxTMI 
TaxTMI 
2017 (2) TMI 6
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....nding dues of the petitioner-Corporation on opposite party no.4 becomes Rs. 47,15,611.09. In spite of repeated notices, opposite party no.4 could not repay the dues of the petitioner-Corporation, ultimately the petitioner took over the industrial unit on 13.3.2002 in exercise of the powers conferred under Section 29 of the State Financial Corporation Act, 1951 (hereinafter to be referred to as "the Act", in short), the Corporation sold the assets of opposite party no.4 in public auction to one Ajay Kumar Agarwala, opposite party no.5 for an amount of Rs. 29.25 lakhs with down payment of Rs. 10.25 lakhs subject to the usual term of sale/ loan agreement. Opposite party no.4 was a defaulter under the Orissa Sales Tax Act and was having arrear ....
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....es Tax Department has submitted that the notice as contained in Annexure-1 has been issued in the light of the order passed by this Court in OJC No. 7796 of 1993, which was decided on 16.1.2002 holding therein that there shall be first charge on the property of the dealer or such person as the case may be, as per the provisions of the Sales Tax Act, and taking into consideration the judgment passed by this Court, notice under Section 13(a)(b) of the Orissa Sales Tax Act has been issued and in consequence thereof, order has been passed on 6.4.2002 directing the petitioner-Corporation to pay into the Government treasury within seven days of receipt of notice if the money is due from him and as such, the authorities in the light of the proposi....
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....utstanding as on the date of demand. The Sales Tax Officer had also issued notice to the Branch Manager, Central Bank of India, the Corporation's banker to credit forthwith a sum of Rs. 17,47,880/-by way of draft in favour of the Sales Tax Officer and the said decision of the sales tax authorities was challenged before this Court in the said writ application. A coordinate Bench of this Court after taking into consideration the ratio laid down by the Hon'ble Apex Court in the cases of State Bank of Bikanir, Jaipur v. National Iron and Steel Rolling Corporation, 96 STC 612 and Dena Bank v. Bhikhabhai Prabhudas Parekh and Co. and others (2000) 5 SCC 694 referring to Karnataka Land Revenue Act, held that the principle of priority or precedence ....
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....y the loan dues, ultimately the Corporation took over of the industrial unit on 13.3.2002 and by exercising its jurisdiction conferred under Section 29 of the Act, sold it out in faovur of one Ajay Kumar Agarwala by way of public auction. At that juncture, the sales tax authorities had issued notice upon the Corporation asking the petitioner-Corporation to deposit the tax liability of opposite party no.4 by depositing the default amount in the Government treasury vide notice dated 5.4.2002, which is impugned in this writ application. The contention raised by the learned counsel representing the petitioner-Corporation that since the property has already been sold out in faovur of opposite party no.5 and as such, the Sales Tax authorities oug....