The Hon’ble HC, Gujarat in the matter of M/s Choksi Texlen Pvt. Ltd. v. State of Gujarat [Special Civil Application No. 8096 of 2019 dated October 18, 2019] instructs Revenue authorities to withdraw the charge and attachment made on the Petitioner’s property to recover alleged dues of the erstwhile owner of the property under the Gujarat Value Added Tax Act, 2003.
Facts:
M/s Choksi Texlen Pvt. Ltd. (“the Petitioner 1”) is a private limited company and is engaged in the manufacture and sale of textile articles. The Petitioners 1 and the Director (“Petitioner 2”) purchased the property by a registered sale deed dated July 13, 2011 from one M/s. Varun Filaments Private Limited (“Varun Filament”) on payment of consideration. Next day, the Petitioners made an application with the Revenue department (“Respondents”) for mutation of the entry of sale of property by registered sale deed. Subsequently, on September 26, 2011, the Petitioners had obtained a title clearance certificate in respect of the subject property from an advocate, who certified that there was no subsisting encumbrance on the property.
Thereafter, the Petitioners came to know that by an order dated September 9, 2011 (“Impugned Order”), the Respondents had created a charge and attached the subject property for alleged dues of the erstwhile owner of the property namely, Varun Filaments for the year 2006-07. It is the case of the Petitioners that they had approached the Respondents and informed them that they had already purchased the subject property by way of a registered sale deed dated July 13, 2011. However, despite oral requests being made time and again for removal of the charge and attachment there was no response from the Respondents.
In view of the charge registered by the Respondents, by an order dated January 7, 2013, the Deputy Mamlatdar, Mandvi, rejected the application made by the Petitioners for mutating the entry for transfer of the subject property in the name of the Petitioners.
Being aggrieved, the Petitioners preferred an appeal against the said order before the Deputy Collector, Mandvi, who by an order dated August 27, 2015 dismissed the appeal. Against the said order, the Petitioner filed a revision application before the Collector, Surat, but failed. The Petitioners, therefore, approached the Value Added Tax Department again.
In the meantime, the Petitioners also filed an application under the Right to Information Act, 2005 for getting information of the assessment order for the year 2006-07 passed in the case of the erstwhile owner of the subject property based on which the impugned attachment and charge had been entered by order dated September 9, 2011. Pursuant thereto, the Petitioners were served with a copy of the assessment order dated May 3, 2014 for the year 2006-07. On scrutiny of the said order, the Petitioners found that the Impugned Order, on the basis of which the charge and attachment had been made on the subject property, had been quashed and set aside in appeal and the matter had been remanded for fresh assessment.
Issue involved:
The Petitioners seek a direction against the Respondents to withdraw the charge and attachment on property in respect of alleged dues of the erstwhile owners of the property i.e., Varun Filaments under the Gujarat Value Added Tax Act, 2003 (“the GVAT Act”).
Held:
The Hon’ble HC, Gujarat in Special Civil Application No. 8096 of 2019 dated October 18, 2019 held as under:
