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2017 (10) TMI 1346 - HC - VAT and Sales TaxRecovery of Dues - priority of debt - registration of security interest - letter vide reference No. A7/119/2014, dated 04.04.2017 - Gazette Notification No. EG No. 190/2016, dated 06.12.2016. Held that:- After the registration of security interest, the debts due to any secured creditor shall be paid in priority over all other debts and all revenues, taxes, cesses, etcetera - It is not in dispute that the assets, over which security interest is created by way of registration originally in favour of the Andhra Bank which was later assigned to the petitioner, are still standing in the name of respondent No.3 / the guarantors. Therefore, the question of Section 26-E of the Act being prospective or retrospective does not arise as regards the assets, which remained intact without being sold by any creditor as on the date of coming into force of the said provision. Therefore, the petitioner has priority over all other debts including revenues, taxes, cesses, etcetera payable to the Central or State Governments or local authorities. The demand made by respondents 1 and 2, impugned in this Writ Petition, is declared as illegal and unenforceable - petition allowed.
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