C.SOMASUNDARAM Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) The petitioner is the owner of property situated at S.No.1070- Patta No.18 and 19, Agraharam by-pass Road, J.K.K. Nataraja Colony, Komarapalayam, Namakkal District ('property'/'property in question'), having become entitled to the same under a settlement deed executed by his father, A.Chandrasekaran on 22.06.2009. The property had initially been purchased by one Nagarathinam alias Kannamal arrayed as the 2nd respondent, ('R2'), she having purchased the same in 1990, on the strength of a power of attorney executed by one Muthappa Gounder, to one C.Mohanasundaram. She later sold the same to A.Chandrasekaran Chettiar, the petitioners' father who settled the same upon the petitioner in 2009, under Document No.3303 dated 22.06.2009.

(2.) The petitioner, claiming to be a bonafide purchaser, states that he has been in continuous possession and ownership of the property till 2012. On 28.09.2012, the Assistant Commissioner, Commercial Taxes/R1 raised a demand of arrears of sales tax pertaining, admittedly, to R2 pursuant to commercial taxes assessments framed upon her in terms of the Tamil Nadu General Sales Tax Act, 1959 (in short 'TNGST Act'). The demands were again reiterated on 15.10.2012. It is only at that juncture that the petitioner came to be aware that R2 and her husband had been assessed to sales tax on the file of the first respondent and had become liable for certain dues of sales tax raised upon an entity known as Sarathy Engineering Works under the name and style of which business was being carried on by them. The arrears related to the periods 1993-94 to 1997-98 and amounted to a sum of Rs.6,74,550/-.

(3.) R1 called upon the petitioner to remit the aforesaid sum under threat of bringing the subject property to public auction in terms of the Tamil Nadu Revenue Recovery Act, 1864 (in short 'RR Act').