section 27
Transfers to defraud revenue void and provisional attachment of Property
The Andhra Pradesh Value Added Sales Tax Act, 2003Tax200387 sections5 chapters
Chapter IV PROCEDURE AND ADMINISTRATION OF TAX
Statutory text
- (1) Where during the pendency of any proceedings under the Act, or after the completion thereof, any VAT dealer or TOT dealer or any other dealer creates a charge on, or parts with the possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever, of any of his assets in favour of any other person, with the intention to defraud the revenue, such charge or transfer shall be void as against any claim in respect of any tax, or any other sum payable by the VAT dealer or TOT dealer or any other dealer as a result of the completion of the said proceedings or otherwise: Provided that, such charge or transfer shall not be void if it is made,--
- (a) for adequate consideration and without notice of the pendency of such proceedings under this Act, or as the case may be, without notice of such tax or any other sum payable by such VAT dealer or TOT dealer or any other dealer; or
- (b) with the previous permission of the authority prescribed. Explanation: In this section 'assets' means land, building, machinery, plant, shares, securities, and fixed assets given as security in banks to the extent to which any of the assets aforesaid do not form part of the stock in trade of the business of the dealer.
- (2) Provisional attachment of property to protect revenue in certain cases,--
- (a) where, during the pendency of any proceeding for the assessment or reassessment of any tax or turnover tax which has escaped assessment, the authority prescribed is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, may with the previous approval of the Commissioner, by order in writing, attach provisionally in the prescribed manner any property belonging to the dealer;
- (b) every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under clause
- (a) of this sub-section: Provided that the Commissioner may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed two years.
Study data processing for this section.
PDF: pending for this language.