THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
DEMANDS AND RECOVERY
Section 81:
Transfer of property
to be void in certain cases.
Where a person, after any amount
has become due from him, creates a charge on or parts with the property
belonging to him or in his possession by way of sale, mortgage, exchange, or
any other mode of transfer whatsoever of any of his properties in favour of any other person with the intention of defrauding
the Government revenue, such charge or transfer shall be void as against any
claim in respect of any tax or any other sum payable by the said person:
Provided that, such charge or transfer shall
not be void if it is made for adequate consideration, in good faith and without
notice of the pendency of such proceedings under this Act or without notice of
such tax or other sum payable by the said person, or with the previous
permission of the proper officer.