Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2021 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 1170 - HC - VAT and Sales TaxRecovery of VAT dues - removal of first charge of Government - priority over the movable and immovable properties of borrower of petitioner bank as secured creditor - bank can proceed further to auction the properties to recover its dues or not - HELD THAT:- The position prevailing on record is that the properties in question have been mortgaged with the petitioner bank undisputedly by registered mortgage deed and encumbrance certificate has also been issued to the petitioner bank incorporating the charge of the bank over the property. It is also not in dispute that the petitioner has taken all steps strictly under the provisions of the Act to realize the dues of the mortgaged property and it is only at that stage, the respondent No.4 has come out with a plea that they have got first charge over the property to realize their dues. This Court is of the opinion that a case is made out by the petitioner to call for an interference. Accordingly, the impugned communication dated 21.4.2020 issued by the respondent No.4 is hereby quashed and set aside and consequently, it is held that since the petitioner bank is having a clear charge over the property by virtue of the aforesaid circumstance, it has got first priority over the secured assets and not the State Government by virtue of the provisions of the VAT Act, 2003. The petition stands allowed.
|