2022 (9) TMI 849

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.... Court of Judicature at Allahabad in Trade Tax Revision Nos. 664/1999 and 667/1999, by which, the High Court has dismissed the said revision applications preferred by the Revenue and has confirmed the orders passed by the Trade Tax Tribunal (hereinafter referred to as the Tribunal) allowing Appeal Nos. 259/97 (8081) and 260/97 (8182) holding that recovery certificate issued in the name of M/s. Shaw Scott Distillery (P) Ltd. (hereinafter referred to as the original assessee) and endorsed against M/s. Radico Khaitan Ltd. (hereinafter referred to as the purchaser) could not be proceeded against the purchaser, the Revenue has preferred the present appeals. 2. The facts leading to the present appeals in a nutshell are as under: 2.1 That th....

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.... the First Appellate Authority, the purchaser challenged the same before the Trade Tax Tribunal. The Tribunal allowed the said appeals and held that the endorsement of recovery certificate against the purchaser is bad in law by observing that (i) no assessment proceedings/proceedings under the Act were pending when the purchaser - M/s. Rampur Distillery & Chemicals Ltd. purchased the goods, plant and machinery from the original assessee and (ii) that the transactions of sale of goods, plant and machinery between the original assessee and the purchaser cannot be said to be with the intention of defrauding tax or any other dues and (iii) that the purchaser was the bona fide purchaser. 2.3 Feeling aggrieved with the common judgment and orde....

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....e pendency of any proceedings under this Act, any person liable to pay any tax or any dues creates a charge on, or transfers any immovable property belonging to him in favour of any other person with the intention of defrauding any such tax or other dues, such charge or transfer shall be void as against any claim in respect of any tax or other dues payable by such person as a result of the completion of the said proceedings; Provided that nothing in this section shall impair the rights of a transferee in good faith and for consideration. (2) Nothing in subsection (1) shall apply to a charge or transfer in favour of a banking company as defined in the Banking Regulation Act, 1949 or any other financial institution specified....