Transfer of property to be void in certain cases :
Where a person, after any tax 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 – section 81 of CGST Act.
However, 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 proceeding 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 – proviso to section 81 of CGST Act.