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2009 (1) TMI 794 - HC - VAT and Sales TaxProceedings in respect of the tax dues from a defaulter for the period 1993-94 to 1997-98 seeked to be quashed - Held that:- All that the provision contemplates is that tax assessed on or has become payable by, or any other amount due under this Act from a dealer or person and any fee due from him under the Act, shall be subject to the claim of the Government in respect of land revenue and the claim of the Land Development Bank in regard to the property mortgaged to it under section 28(2) of the Tamil Nadu Co-operative Land Development Banks Act, 1934 (Tamil Nadu Act X of 1934), and it will have priority over all other claims against the property of the said dealer or person to be recovered as land revenue. By so holding, the provision, by itself, does not create the first charge as in the other enactments and the claim of the State has to subserve the claim of the secured creditor, who, by the anterior charge created in his favour, has the first claim over even the State claim. On the admitted fact position as regards the date of the passing of the assessment orders as stated in the counter in paragraph 4, have no hesitation in accepting the plea of the petitioner.The provisions of the Tamil Nadu Act cannot stand the comparison of the Rajasthan Act or the Bombay Act to have the decisions of the Supreme Court applied in favour of the respondent's claim. Appeal allowed of petitioner.
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