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2021 (9) TMI 613 - HC - VAT and Sales TaxRecovery of Tax dues - First charge - Section 77 of the U.P. VAT Act - Overriding effect of IBC - Sovereign power of the State to enable the State to raise money by taxation for adequate revenue - liability of an assessee/ dealer under the U.P. VAT Act and the U.P. Tax on Entry of Goods into the Local Areas Act, 2007 - HELD THAT:- The definition of the word “charge” in IBC shall relate to the subject matter of the IBC which cannot be read or borrowed for interpreting Section 77 of the U.P. VAT Act. Section 77 of the U.P. VAT Act, cannot be said to be referable to any of the entries of List-III – Concurrent List. Overriding effect of IBC - HELD THAT:- The provisions of Section 238 of the IBC cannot be read as overriding the provisions of the U.P. VAT Act including Section 77. Liability of an assessee/ dealer under the U.P. VAT Act and the U.P. Tax on Entry of Goods into the Local Areas Act, 2007 - HELD THAT:- Assessment followed by demand notice crystallises the liability of an assessee/ dealer under the U.P. VAT Act and the U.P. Tax on Entry of Goods into the Local Areas Act, 2007. Most of the demands against the petitioner is subsequent to the effective date, i.e. 15.05.2018 when the adjudicating authority passed the order under Section 31 of the IBC. Therefore, for the purposes of the present case, the relevant date would be when the assessment orders were passed followed by demand notice and not the taxable even - when the interim orders were discharged, the right of the State to recover the amount has accrued. Put up tomorrow at 2 P.M. for further hearing, along with connected writ petitions.
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