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2020 (1) TMI 1551 - HC - VAT and Sales TaxCreation of charge on assets which are already mortgaged - attachment of the plots for recovery of the sales tax dues - priority of charge in case of secured creditors - creation of first charge over the property which is already mortgaged in favour of a secured creditor - whether Section 48 of the Gujarat Value Added Tax Act, 2003 would apply to reduce tax, which arose under the Gujarat Sales Tax Act, 1960 or not? - HELD THAT:- The questions are no more res-integra, in view of the decision of the co-ordinate bench of this Court rendered in the case of KALUPUR COMMERCIAL CO-OPERATIVE BANK LTD. VERSUS STATE OF GUJARAT [2019 (9) TMI 1018 - GUJARAT HIGH COURT], wherein it is held that the first priority over the secured assets shall be of the Bank and not of the State Government by virtue of Section 48 of the VAT Act, 2003. In view of the judgement cited, the respondent No.2 cannot have a prior charge over the secured assets, which have already been mortgaged much prior in point of time before the outstanding dues of the sales tax notice of the assessee i.e. M/s. Choksi Tubes in the facts of the present case. The respondents are therefore, not entitled to continue the attachment over the property in question - respondents are directed to remove the attachment in the revenue records with regard to the properties in question - petition allowed.
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