The petitioner challenged proceedings declaring a sale deed as void under Section 17-A of the APGST Act on the allegation that the transfer was made to evade sales tax dues of a company under liquidation. The factual background showed that the sale was effected for consideration much prior to initiation of proceedings and that the petitioner was a bona fide purchaser.
The Court held that Section 17-A can be invoked only when the transfer is proved to be intended to defraud revenue. In the absence of material establishing fraudulent intent and considering the long delay in initiation of proceedings, the impugned order was held to be without jurisdiction and was set aside.