TaxTMI 
TaxTMI 
2022 (9) TMI 939
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....issioner, Ranipet SIPCOT Assessment Circle (R2) instructing the Sub-Registrar, Walaja, Vellore District (R4) to register a charge in respect of the property admeasuring 2 acres and 52 cents, comprised in Old Survey Nos.472/1 & 472/9 and (New Survey Nos.472/1D1 and 472/9A) situated at Mukundarayapuram Village, Ranipet, Walaja Taluk, Vellore District and the property measuring an extent of 39520 sq. ft., comprised in Survey No.62, Korai Village, bearing Plot Nos. 117 & 118, SIDCO Industrial Estate, SIPCOT, Ranipet, Vellore District (properties/properties in question). 2. The sequence of relevant dates and events to decide the writ petition are set out as follows: (i) The properties in question were owned by one, Anusha Internation....
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....y thereafter. (viii) The petitioner had exhibited due diligence even at the time of sale, verifying that there was no encumbrance upon the properties, at the time of purchase thereof. (ix) Encumbrance certificate dated 05.09.2011 issued by the Sub- Registrar, Walaja is placed on record, revealing that, at the time of purchase of the properties by the petitioner, no charge had subsisted in regard to the same, either at the instance of the Commercial Taxes Department or any other authority for that matter. Patta has been issued by the Revenue Authority on 18.10.2012. (x) While this is so, the petitioner required additional funds for the purposes of its business and thus approached State Bank of India (SBI) for raisi....
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....o him, there is an automatic attachment of all assets of that concerned assessee to secure the interests of the Commercial Taxes Department. 5. Sections 24 and 24A of the Act, to the extent to which they are relevant, are extracted below: Section 24. Payment and recovery of tax: (1) Save as otherwise provided for in sub-section(2) of section 13, the tax assessed or has become payable under this Act from a dealer or person and any other amount due from him under this Act shall be paid in such manner and in such installments, if any and within such time as may be specified in the notice of assessment, not being less than twenty-one days from the date of service of the notice. The tax under sub-section (2) of section 13 shall be pa....
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....payable by the dealer as a result of the completion of the said proceeding or otherwise: 6. In my view, reliance upon the provisions of Section 24-A are misplaced in the facts and circumstances of this case. Section 24 of the Act sets the stage for the raising of a valid demand. To invoke the protection afforded by Section 24-A, the revenue must engage in some constructive act, such as identification of the properties of a defaulting assessee, communication with the assessee concerned in that regard, issuance of a notice of attachment in statutory form, communication of the attachment to the sub-registrar concerned for creation of charge and ensuring that the encumbrance certificate reflects such charge. 7. The respondent officials, h....