Velagala Lakshmi Vs State of Andhra Pradesh (Andhra Pradesh High Court)
Andhra Pradesh High Court held that transfer of property cannot be declared as void by invoking provisions of section 81 of the Central Goods and Services Tax Act, 2017 unless there is a finding as to the nature of the transactions by competent authority.
Facts- Petition under Article 226 of the Constitution of India is filed praying that the action of the 4th Respondent in issuing the Notice dated 26.06.2024 attaching the Immovable Property belonging to the petitioners in S.No 298/1, situated at Kommara Village, Attili Mandal, West Godavari District and subsequent action in issuing Notice for Auction dated 09.09.2024 proposing to conduct the sale of the petitioner’s properties on 10.10.2024 should be declared as wholly illegal, arbitrary, irrational, unjust, without jurisdiction, contrary to the provisions of Goods and Service Act, 2017 and Rules made therein, principles of natural justice besides being violative of Articles 14 and 300-A of the Constitution of India.
Conclusion- Section 81 of the Act merely provides for declaration of certain transactions to be void transactions with certain safeguards embedded in the proviso. However, there is no machinery available for determination of the question as to whether the transactions in question are sham transactions falling within the ambit of Section 81 of the Act.
