Section 17A in Andhra Pradesh General Sales Tax Act, 1957
17A. Transfers to defraud revenue void.
- Where during the pendency of any proceeding under this Act, or after the completion thereof any dealer creates a charge on, or parts with the possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever of any of his assets in favour of any other person, with the intention to defraud the revenue, such charge or transfer shall be void as against any claim in respect of any tax, or any other sum payable by the dealer as a result of the completion of the said proceeding or otherwise:Provided that, such charge or transfer shall not be void if it is made -(i)for adequate consideration and without notice of the pendency of such proceeding under this Act or, as the case may be, without notice of such tax or other sum payable by the dealer; or(ii)with the previous permission of the assessing authority.Explanation. - In this section assets means land, building, machinery, plant shares, securities, and fixed assets in banks to the extent to which any of the assets aforesaid do not form part of the stock in trade of the business of the dealer.
