M/S.Showtech Stone International Pvt. ... vs The Deputy Commercial Tax Officer-I, ... on 28 August, 2014
Sri J.V. Rao, Learned Counsel for the petitioner, would
submit that, as the fourth respondent was in default of payment of
value added tax for the years 2005-06 to 2007-08, the department
should have exercised abundant caution by notifying the
properties of the fourth respondent to the public; without taking
any precautionary steps, they had abruptly issued the impugned
notices to a genuine dealer; the petitioner cannot be made a
scapegoat for the negligent acts of the first and second
respondents; they had purchased the land in good faith, under a
bonafide belief, and without being aware of the tax arrears due
from the defaulting dealer i.e., the fourth respondent; the first
respondent cannot proceed against them, for recovery of the tax
arrears of the defaulting dealer, under Section 27(1) of the A.P.VAT
Act; the first respondent can only proceed against the defaulting
dealer who is an existing registered dealer on the rolls of the third
respondent; they could not, therefore, have proceeded against the
petitioner without making any attempt to realize tax arrears from
the fourth respondent; the respondents are not justified in asking
the petitioner to discharge the liability of the defaulting dealer; the
fourth respodnent had stated, in the registered sale deed, that they
had paid all taxes due to the commercial tax department; as the
petitioner was informed that there were no arrears of tax, they had
purchased the subject land after taking all necessary precautions;
the competent authority had, by letter dated 31.05.2007, granted
them permission to quarry the subject land; and the action of the
respondents, in proceeding against them, is contrary to law.
Learned Counsel would rely on Abdul Shukoor v. Arji Papa Rao ;
Ahmedabad Municipal Corporation v. Haji Abdul Gafur Haji
Hussenbhai ; State of Karnataka v. Shreyas Papers P. Ltd. ;
Deputy Commercial Tax Officer v. R.K. Steels Ltd ; Rukmani v.
Deputy CTO (Mad.)