Section 16 in The Gujarat Tax on Entry of Specified Goods Into Local Areas Act, 2001
16. Transfer to defraud revenue void.
- Where, any person, after the tax has become due from him under this Act, creates a charge on, or parts with the possession by way of sale, mortgage, exchange or any other mode of transfer whatsoever of any of his property in favour of any other person with the intention of defrauding the Government revenue, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the person under this Act:Provided that such charge or transfer shall not be void if made for valuable consideration and without notice of any proceeding under this Act.
