LUCY VINCENT Vs. DISTRICT COLLECTOR KASARGOD

JUDGEMENT

(1.) The petitioners are challenging Ext. P11 and P12 orders whereunder the property purchased by the petitioners were held to be subject to sales tax liability due from the original owner of the properties by virtue of S.26A of the KGST Act. The owner of the properties namely, 7th respondent is admittedly in arrears of sales tax to the tune of Rs.12,38,443/-. Since default continued after assessment, the property was sold in revenue auction on 14/06/1996 and the purchasers had in fact deposited 50% of the bid amount. However, since assessments were set aside and remanded in appeal proceedings on 25/06/1996, sale was revoked. Without noticing sales tax liability due from the defaulter, the Civil Court in execution proceedings, sold the very same properties on 17/11/1997, 11/12/1997 and 26/12/1998 respectively. In Court auction, the properties were purchased by respondents 4 to 6, who in turn sold the same to petitioners vide Exts. P1 to P3 sale deeds. According to the petitioners, the properties are free from charge towards sales tax liability and therefore, sale in Court auction and their subsequent purchase confer valid title for the properties free of charge. When the matter came up in the first round, this Court directed the Tahsildar to consider the claim petition made by the petitioner, which was disposed of vide Exts. P11 and P12. It is these orders that are under challenge in this W.P. I heard counsel for the petitioner and Government Pleader for respondents 1 to 3.

(2.) The first contention raised is that S.26A has no application and the other provision namely, S.26B has come into force only on 01/04/1999. The contention raised by respondents 1 to 3 is that S.26A is in force with effect from 01/04/1993 and therefore, all the transfers made including the sale made by the Court in execution proceedings are hit by S.26A of the Act. In order to appreciate the contentions raised, the scope of relevant Sections have to be looked into and for easy reference, S.26A and 26B are extracted hereunder: