STATE OF KARNATAKA & ANR.. vs SHREYAS PAPERS PVT. LTD. . — C.A. No. 3170 - 3173/2000

Case Summary: State of Karnataka v. Shreyas Papers Pvt. Ltd. The Supreme Court dismissed the State's appeal, holding that Shreyas Papers was not liable for the prior owner's sales tax arrears. The Court ruled that Section 15 of the Karnataka Sales Tax Act imposes liability on transferees only when there is complete transfer of business ownership "as a going concern"—not merely transfer of individual assets. Since only assets were sold, not the business itself, the transferee had no tax liability. Additionally, the Court found Shreyas Papers was a purchaser for value without notice of the tax charge, making the charge unenforceable under the Transfer of Property Act. This case analysis is maintained by casestatus.in based on publicly available court records.