Properties of the deceased assessee were sold for the realization of arrears of tax payable under the KGST Act for the period from 1995 onwards i.e., before notice was issued by the IT Department; with respect to the year 1995 onwards, there was a first charge with reference to the tax payable under the KGST Act as per provisions of s. 26B of KGST Act; properties in possession of the petitioners cannot be proceeded against for realization of the arrears payable under the IT Act.  Merely on account of the provisions under s. 281, the ownership transfer to the petitioners herein cannot be declared as void by the ITO or the Department. For that, they may have to institute a suit as was done in the case of mortgage effected in favour of the Kerala State Financial Corporation. The properties in possession of the petitioners cannot be proceeded against for realization of the arrears payable under the IT Act

(AY.1995-96)