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2023 (7) TMI 193 - HC - Central ExcisePriority of recovery of tax / duty of excise dues - Attachment of property - Seeking removal of lien/charge/encumbrance/mutation entry of Central Excise Department from the records of Respondent No. 4 and 5 in respect of the immovable property - refusal to register the Sale Certificate because of the lien/charge/encumbrance/mutation entry of Respondent No. 1 and 2 recorded in the records of Respondent No. 4 and 5 in respect of the Secured Asset - HELD THAT:- The issue raised in the present Petition is squarely covered by the decision of the Full Bench of this Court in the case of Jalgaon Janta Sahakari Bank Ltd. and Anr. Vs Joint Commissioner of Sales Tax Nodal 9, Mumbai and Anr. [2022 (9) TMI 163 - BOMBAY HIGH COURT]. In this decision, the Full Bench has clearly held that if the security interest of the secured creditor is registered with CERSAI, then the secured creditor would get priority over the dues of the Government. Since the Full Bench decision of this Court in the case of Jalgaon Janta Sahakari Bank Ltd. and Anr. has rested the controversy of priority of the secured creditor viz-a-viz the dues of the Central Government or State Government or local authority under Section 26-E of the SARFAESI Act, 2002, the lien/charges/encumbrance/mutation entry, if any, registered with Respondent No.5 by Respondent Nos. 1 & 2 cannot be allowed to stand and Respondent No. 4 would have to be directed to record/register the Sale Certificate/Sale Deed under the provisions of the Registration Act, 1908 as free from any encumbrances of the Respondent No. 1 and 2. Petition allowed.
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