2021 (3) TMI 1238

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....e been challenged to confirm the auction held on 06.12.2006, the cancellation of the said auction conducted. 2. The petitioner had participated in the auction of the land which was leased to the 3 rd respondent/Vellore District Co-operative Society Mill by the Government of Tamil Nadu. The 3 rd respondent is now under liquidation. The auction in question was initiated by the Commercial Tax Department namely the 2 nd respondent herein, seeking to auction the land on which the 3 rd respondent's factory/mill was situated to recover the arrears of tax for the period between 1989-1990 for a total sum of Rs. 7.58 Crores. 3. The land in question measuring about 49.51 acres was given for use to the 3 rd respondent/Spinning Mill by the Gov....

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....d, the Government may resume the land, if it is required for a public purpose or if they consider that it should be returned to the original owner. If the Government decide not to exercise this power and inform the Mills accordingly, the latter may dispose of the land in any manner it liked. In the event of the resumption of the land under this condition, the compensation payable to the Mills shall be the value of the land at the time of acquisition (less the 15 per cent awarded for compulsory acquisition) or its estimated marked value at the time of resumption, whichever may be less, together with the value of the buildings and other improvements at the time of resumption. If there are buildings on the land which the Government do not....

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....nt (ST) Vellore (Rural) was requested to acknowledge the same. It was stated by the Official Liquidator that the Commercial Tax Department, Vellore was requested to return the amount received from the petitioner during the quetus sale of land and building of the aforesaid Mill in the auction sale proceedings held in the year 2006 which was set aside later by the Territorial Assistant Commissioner (CT) (FAC), Vellore vide order RCA.No.07/9770/2002 dated 14.08.2008. 6. Though the impugned orders have been challenged primarily on the ground that the basis on which the auction has been cancelled was unsustainable, and the auction concludes the sale in favour of the petitioner. It is further stated that none of the grounds which were rai....

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....ore, the entire exercise carried out by the Commercial Tax Department in respect of property belonging to the Government represented by the District Revenue Officer, Vellore District itself was without any basis. In any event, the auction that was conducted on 06.12.2006 has been cancelled by the territorial Assistant Commissioner of Commercial Tax Department. The amount that was paid by the petitioner was also sought to be refunded back. The petitioner however declined to receive the amounts hoping that the petitioner would succeed in the writ proceedings which have been initiated since 2007. 10. Since, the land in question could not have been auctioned by the Commercial Tax Department under the provisions of the TNGST Act, 1959, the cl....