Assessee is Directed to Clear Outstanding Dues to Enable Registration of Sale Certificate for Auctioned Property | HC

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 27 April, 2025

Latest from Taxmann

sale certificate registration

Case Details: Cholamandalam Investment and Finance Company Ltd. vs. Assistant Commissioner, Karur – 2 - [2025] 173 taxmann.com 450 (Madras)

Judiciary and Counsel Details

  • Vivek Kumar Singh, J.
  • V. Sukumar, for the Petitioner.
  • J.K. Jayaselan, Government Adv., R. Suresh Kumar, Addl. Govt. Pleader & P. Dhanasekaran for the Respondent.

Facts of the Case

The petitioner’s loan accounts were declared Non-Performing Assets (NPA) due to non-payment of the loan. Following this, statutory notices were issued, and the authorities initiated the process for recovery of the outstanding dues. An e-auction of the petitioner’s property was conducted as part of this recovery process, in which Respondent-6 (R6) emerged as the successful bidder. A sale certificate was issued to R6 post-auction. However, a recovery notice was also issued to the petitioner along with GST-DRC-13, notifying the petitioner of an attachment endorsement over the subject property. As a result of this attachment, R6, the successful bidder, refrained from proceeding with the registration of the sale certificate, leaving the petitioner unable to realize the sale proceeds. The petitioner expressed a willingness to pay the remaining outstanding dues once the sale certificate was registered in favour of R6, seeking relief from the Madras High court.

High Court Held

The Hon’ble Madras High Court held that the petitioner was required to pay the remaining outstanding dues to the government within a period of four weeks to facilitate the registration of the sale certificate in favour of R6. The court directed the petitioner to clear the outstanding dues under Section 79 of the Central Goods and Services Tax Act, 2017, and the Tamil Nadu GST Act, 2017, for the registration process to proceed.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied