2020 (2) TMI 531

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....airali Steel Traders. The said partnership concern was in arrears of tax of Rs. 1,24,93,648/- for the Assessment Years 2009-10 to 2012-13. Despite a charge being created under law, the said E.Varadharajan was sold the property to the petitioner. The said property in question was registered vide sale deed Document No.2659, dated 27.08.2002. 3. After the receipt of impugned order, the petitioner has sent a representation stating that the petitioner was not liable to pay tax as the petitioner is a bonafide purchaser of the property without notice of alleged charge created in favour of the respondent Commercial Tax Officer. In this connection, the learned counsel for the petitioner relied on the decision of the Hon'ble Full Bench o....

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....s with the possession (by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever) of any of his assets in favour of any other person, with the intention to defraud the revenue, such charge or transfer shall be void as against any claim in respect of any tax, or any other sum payable by the dealer as a result of the completion of the said proceeding or otherwise: Provided that, such charge or transfer shall not be void if it is made- (i) For adequate consideration and without notice of the pendency of such proceeding under this Act or, as the case may be, without notice of such tax or other sum payable by the dealer; or (ii) with the previous permission of the assessing authority. E....

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....tion of law or whether the sale was made to defeat the interest of the respondent or bonafide cannot be decided in a writ court as it would require a detailed trial on facts. The petitioner has to satisfy that the requirement of proviso to Section 24-A of the TNGST Act, 1959 has been met to perfect his title to the property. 11. The burden of proof as is required under the aforesaid provision can be established only in a civil court by filing a suit for a declaration and this would require a trial. As the courts exercising jurisdiction under Article 226 of the Constitution of India are not Civil Courts for the purpose of such determination, I am of the view that the present writ petition is liable to be dismissed. The petitioner has to p....