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2012 (6) TMI 442 - HC - Income TaxWrit petition - whether the Excise and Customs Department of the Central Government have priority over the secured debt of the 1st respondent - financial institution – Held that:- are no specific provisions under the Central Excise Act or the Customs Act to claim first charge, as provided under other enactments, the Full Bench held that generally the dues to the Government i.e. tax, duties, etc. (Crown's debts) get priority over ordinary debts; only when there is a specific provision in the statute claiming first charge over the property, the Crown's debt is entitled to have priority over the claim of others. In absence of any such provision to claim first charge, the Government cannot claim precedence under the Central Excise Act over the claim of the secured creditor under the SARFAESI Act, 2002. Customs Department cannot claim any priority of claim over the claim of the secured creditor, the 1st respondent - financial institution.
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