THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE N.RAVI SHANKAR WRIT PETITION No. 5983 of 2009. ORDER: (Per Goda Raghuram, J) Heard Sri.Y.N.Lohita, learned Counsel for the petitioner and Sri.Balaji Varma, learned Special Government Pleader for the 2nd respondent and Sri.Y.V.Prasad, learned Standing Counsel for the 3rd respondent Corporation. The notice dt. 9.3.2009 issued by the 2nd respondent calling upon the petitioner to pay Rs. 8,98,312/- along with interest within the time stipulated and in default intimating that further action under the Revenue Recovery Act will be initiated, is assailed in this writ petition. The impugned notice details the tax dues for the period 2001-02 and 2002-03 under the A.P.G.S.T. Act, 1957, Central Sales Tax, 1956 and RDC Act from the dealer Sri Rama Rice Mill Private Limited, Panchedu whose assets were purchased by the petitioner from the 3rd respondent Corporation, in a sale conducted after following the due process under Section 29 of the S.F.C. Act, 1951. The 4th respondent was due amounts to the 3rd respondent Corporation and as the 4th respondent defaulted in repayments, the 3rd respondent Corporation brought the land, buildings and machinery of the defaulting unit (4th respondent) to sale under Section 29 of the S.F.C. Act, 1951. The petitioner became the successful bidder and purchased the property for a consideration of Rs. 84,60,000/- and deposited the entire amount in instalments. The 3rd respondent Corporation confirmed the sale by the proceedings dt. 10.6.2008; executed sale deed in favour of the petitioner on 1.8.2008; and delivered possession of the properties as well. While so, the impugned notice was issued to the petitioner, which is challenged in this writ petition. The general terms and conditions for the sale of assets pertaining to sales under Section 29 of the SFC Act, 1951 incorporate a condition that the 3rd respondent Corporation would not be liable for any payment of dues whatsoever by the defaulting industrial concern to any institutions/agencies including the Government, except for panchayat/Municipal tax dues on the immovable property offered for sale (vide Condition No.19). The petitioner would contend that since he had no notice or information about the tax arrears from the 4th respondent to the State under the provisions of the legislations referred to above, he should not be mulcted with the additional liability of payment of these taxes. Section 16-C of the A.P.G.S.T. Act, 1957 reads as under: 16-C Liability under this Act to be the first charge: Notwithstanding anything to the contrary contained in any law for the time being in force [any amount of tax, Government loan extended to the dealer due to treating deferred tax as deemed to have been paid, penalty, interest] and any other sum if any, payable by a dealer or any other person under this Act, shall be the first charge on the property of dealer or such person. Section 18 of the A.P.G.S.T. Act, 1957 Act further stipulates that where ownership of the business of a dealer liable to pay tax is transferred, any tax or other amount payable under this Act in respect of such business and remaining unpaid at the time of the transfer, may without prejudice to any action that may be taken for the purpose of recovery from the transferor, be recoverable from the transferee as if he were the dealer liable to pay such tax or other amount. In the facts and circumstances above and in view of the legal position obtaining from Section 16-C and 18 of the A.P.G.S.T. Act, 1957 Act, the notice impugned herein suffers from no infirmity warranting interference under Article 226 of the Constitution. If the petitioner has any grievance against the 3rd respondent Corporation he is at liberty to pursue the same in accordance with law and before appropriate forum. On the analysis above, there are no merits in the writ petition and the same is dismissed. There shall however be no costs. _______________________ GODA RAGHURAM, J ________________________ N.RAVI SHANKAR, J 13.10.2011. KRB. THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE N.RAVI SHANKAR WRIT PETITION No. 5983 of 2009. ORDER: (Per Goda Raghuram, J) Dt. 13.10.2011.