Andhra Pradesh High Court: Section 81 CGST Act Cannot Be Invoked To Declare Transfer Of Property Void Without Determining 'Nature Of Transaction' As Being Sham

The Andhra Pradesh High Court in the case Velagala Lakshmi and Others v. State of Andhra Pradesh & Others observed and has held that Section 81 of the Central Goods and Services Tax Act, 2017 cannot be invoked to declare transfer of property void, unless there is a specific finding regarding the sham nature of transaction.

The section 81 provides that where a person parts with his or her property after any amount has become due from him under the Act, with the intention of defrauding the Government revenue, such transfer shall be void.