Section 27(1) in Telangana Value Added Tax Act, 2005
(1)Where during the pendency of any proceedings under the Act, or after the completion thereof any VAT dealer or TOT dealer or any other dealer creates a charge on, or parts with the possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever, or any of his assets in favour of any other person such charge or transfer shall be void unless he proves that such charge or transfer was not with the intention to defraud any tax or any other sum payable.
