CHOGMAL BHANDARI & OTHERS vs DEPUTY COMMERCIAL TAX OFFICER II DIVISIONKURNOOL

The Supreme Court held that under Section 17(1) of the Andhra Pradesh General Sales Tax Act, the Sales Tax Authorities can recover sales tax dues from trustees if the trust is deemed fraudulent under Section 53 of the Transfer of Property Act. The Court found that the trust deed executed by Kollayya and Narasimaiah was intended to defeat creditors, thus rendering it void. The Court upheld the High Court's dismissal of the writ petition, affirming the liability of the trustees for the sales tax dues incurred by the settlors.