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2018 (3) TMI 1327 - HC - VAT and Sales TaxRecovery of arrears - Auction purchaser - Section 24 of the TNGST Act, 1959 - Held that: - the issue as to whether the right of the secured creditor over the subject property mortgaged will prevail over crown debt is no longer res integra - reliance placed in the case of Union of India and others vs. SICOM Limited and another [2008 (12) TMI 53 - SUPREME COURT], where the issue before the Hon'ble Supreme Court was whether the State Financial Corporation from whom money was borrowed, by executing a mortgage to the corporation, would have priority over Central Government, which intended to realise the central excise dues, by attachment and seizure of the mortgaged properties. It was held in the case that secured debts have priority over the excise dues. The petitioner is bonafide purchaser and that he should not be imposed with any liability to pay arrears of tax, payable by M/s. Moolchand Exports Limited, (In Liquidation) - petition allowed - decided in favor of petitioner.
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