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Section 51 – Rajasthan Sales Tax Act,1994

Rajasthan Sales Tax Act,1994

Section 51. Certain transfers to be void

Where during the pendency of any proceeding for the determination of any liability to tax, interest, penalty or other sum under this Act, if any dealer or a person against whom such proceeding is pending, creates a charge on, or parts with the possession by way of sale, mortgage, exchange, gift or any other mode of alienation whatsoever, of any of his assets in favour of any other person, such charge, transfer, gift or alienation shall be void as against any claim in respect of any tax, interest, penalty or other sum payable by such dealer or person, which arises as a result of the said proceeding, except when –

(1) such dealer or person has no notice of such proceeding pending against him; and

(2) such transfer is made for adequate valuable consideration.

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Rajasthan Sales Tax Act,1994

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