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2023 (4) TMI 1259 - HC - Central ExciseRecovery of dues - priority of charges - whether the State (Excise Department) will have priority over the secured creditor’s debt? - HELD THAT:- The issue involved in the present appeals is no longer res integra and has been settled by the Hon’ble Supreme Court in PUNJAB NATIONAL BANK VERSUS UNION OF INDIA & ORS. [2022 (2) TMI 1171 - SUPREME COURT] where it was held that Commissioner of Customs and Central Excise could not have invoked the powers under Rule 173 Q(2) of the Central Excise Rules, 1944 on 26.03.2007 and 29.03.2007 for confiscation of land, buildings etc., when on such date, the said Rule 173Q(2) was not in the Stature books, having been omitted by a notification dated 12.05.2000. Secondly, the dues of the secured creditor, i.e. the Appellant-bank, will have priority over the dues of the Central Excise Department, as even after insertion of Section 11E in the Central Excise Act, 1944 w.e.f. 08.04.2011, and the provisions contained in the SARFAESI Act, 2002 will have an overriding effect on the provisions of the Central Excise Act of 1944. Since the question involved in the present appeal is no longer res integra and has been settled by the Hon’ble Supreme Court in Punjab National Bank’s case, all the Letters Patent Appeals are dismissed.
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