SHREYAS PAPERS PVT LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) IN all these matters, the controversy being common, they are disposed of by this common judgment.

(2.) IN W. P. No. 32428 of 1993, validity of Section 15 of the Karnataka Sales Tax Act, 1957, has been assailed while in W. P. Nos. 1444243 of 1998, the action of the respondents in initiating the proceedings, for recovery from purchaser of plant, land and building has been challenged.

(3.) THE facts of the case are that, there was a concern in the name M/s. Mishal Paper Mills (P)Ltd. , manufacturing duplex board, to which financial assistance was provided by the State financial Corporation. In respect of default, when the payments were not made by the said company, powers under Section 29 of the State Financial Corporations Act, were invoked and assessments of the assets of the unit were taken. Thereafter, steps were taken by the Financial corporation for auctioning the said unit. The petitioner purchased the land, plant and machinery in auction as the highest bidder. In respect of the recovery of dues of sales tax, proceedings were initiated against the defaulting company and notices were issued to the petitioner treating it as the transferee-company. It is in this background that the provisions of Section 15 of the KST Act and the action of the respondent have been challenged.