HC Directed Purchaser to File Suit to Prove Bona Fide Purchase of Property from GST Defaulters

  • News|Blog|GST & Customs|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 16 September, 2024

Recent Posts

Blog, News, Insolvency and Bankruptcy Code

Interim Moratorium Barred Continuation of Proceedings u/s 138 of NI Act Against Petitioner Due to IBC’s Overriding Effect | HC

News, Blog, FEMA & Banking

Borrower’s Right to Redeem Secured Asset Ends on Publication of Notice u/s 9(1) of SI Rules, Not After Sale Completion | SC

Latest from Taxmann

Purchase of Property from GST Defaulters

Case Details: S. Geetha v. State Tax Officer, Madurai Rural (West) - [2024] 165 taxmann.com 321 (Madras)

Judiciary and Counsel Details

  • C. Saravanan, J.
  • N.S. Karthikeyan for the Petitioner.
  • R. Suresh Kumar Addl. Govt. Pleader for the Respondent.

Facts of the Case

The petitioner had purchased a property from a partnership firm and the department attached property on ground that seller was liable to pay arrears of tax. The petitioner filed writ petition against the attachment order and contended that order of attachment and notices were in gross violation of principles of natural justice as no notice was issued to the petitioner before the attachment was made.

High Court Held

The Honorable High Court noted that as per Section 81 of the GST Act, there is an embargo on the assessee, who is in default from transferring or alienating the assets with a view to defeat the interest of the Government Revenue. The petitioner has to establish the bona fide in the manner known to law and mere reliance to encumbrance certificate is not sufficient. In the present case, the petitioner must file a suit to prove bona fide purchase and therefore, the Court dismissed the petition but directed the petitioner to file suit within 30 days.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied