TMI Blog2020 (1) TMI 1551X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee i.e. M/s. Choksi Tubes in the facts of the present case. The respondents are therefore, not entitled to continue the attachment over the property in question - respondents are directed to remove the attachment in the revenue records with regard to the properties in question - petition allowed. - R/Special Civil Application No. 11870 of 2015 - - - Dated:- 21-1-2020 - Mr. Justice J.B. Pardiwala And Mr. Justice Bhargav D. Karia, JJ. ORAL JUDGMENT (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) 1. The petitioner No.1, a Private Ltd. Company incorporated under the provisions of the Companies Act, 1956 has filed this petition through its Authorized Officer along with petitioner No.2, who is shareholder of the petitioner No.1-Company. 1.1. By this petition, the petitioners have challenged the action of the respondent Nos.1 and 2 in not removing the charge of the outstanding sales tax dues in attachment over Plot No.60/A for sale consideration of ₹ 8 crores and Plot No. 60/B for sale consideration of ₹ 7.5 crores situated at GIDC, Phase-I, Vatva, Ahmedabad. 1.2. It is the case of the petitioners that the aforesaid plots were belonging to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plots in the name of petitioner No.1-Company. 1.10. The petitioner No.1-Company thereafter, obtained the title clearance certificate from its Solicitor, wherein it was mentioned that there is attachment of the Commercial Tax Department on the said plots. 1.11. The petitioner made a representation before the respondent No.2 for removal of the charge vide letter dated 24.04.2015. 1.12. The petitioners have preferred this petition being aggrieved by the action of the respondent Nos.1 and 2 authorities in not removing their charge of the outstanding sales tax dues with regard to the plots in question and in not lifting its attachment. 2. Mr. S.N. Soparkar, the learned Senior Advocate assisted by learned Advocate Mr. Shashvata Shukla, and learned Advocate Mr. S.P. Majmudar for the petitioners submitted that the action of the respondent No.2 is contrary to the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short the Securitisation Act ) as the Securitisation Act has overriding effect over the provisions of the Gujarat Sales Tax Act. 2.1. It was further submitted that both the plots were mortgaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. had filed reference with BIFR (Board for Industrial and Finance Reconstruction) under section 15(1) of the Sick Industries Companies (Special Provision) Act 1985. The case under BIFR was registered as Misc. application No.399/2014, case No.111/2006. 8. I say and submit that the BIFR has passed an order on 24.09.2014 in aforesaid order the BIFR submits as follows. Having considering the submission made during the hearing and the material on record, the bench observed that every party present in the hearing unequivocally admitted that EARCL (Edleweiss Asset Reconstruction Co. Ltd.) is the sole secured creditor representing 100% of the secured debt of the Company the bench noted that reference of the M/s. Choksi Tube Company Ltd. stands abated under the third provision of section 15(1) of SICA (Sick Industrial Companies Act) as sole secured creditor Viz. Edelweiss Asset reconstruction Company Ltd. (EARCL) has taken action under section 1394) of SARFAESI Act. The BIFR bench has issued the following direction a. The board discharges State Bank of India (SBI) from the responsibility of the operating agency to the board. b. All creditor statutory authority a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vatva GIDC, Ahmedabad following citation of the Hon ble Supreme Court is applicable to this case is mentioned as below CA No.1434/2003 M/s Orrisa State Financial Organization v/s Commissioner of Commercial Tax and Others. The above mentioned case decided on 03.12.2009 by observation it was held that charge created by section 33C of the MP General Sales Tax Act 1958 in favour of the State in respect of Sales Tax dues shall prevail over the charge created by the dealer in favour of the bank respect of the loan. A copy of Civil Application No.1434/2003 passed by Hon ble Supreme Court is annexed herewith and marked as ANNEXURE R-III. 14. I say and submit that as per section 48 of the Gujarat Value Added Tax Act 2003 read with the section 100, the sales tax dues (earlier act), can be recovered by Gujarat Value Added Tax Act and the charge remains as the first charge of the State Government. A copy of relevant section i.e. section 48 and section 100 of the GVAT Act 2003 is annexed herewith and marked as ANNEXURE R-IV (Colly). 3.1. Relying upon the aforesaid submissions, the learned Assistant Government Pleader submitted that as per provision of section 48 of the VAT A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ises for consideration of the Court is whether Section 48 of the Gujarat Value Added Tax Act, 2003 (for short, GVAT Act, 2003 ) would apply to reduce tax, which arose under the Gujarat Sales Tax Act, 1960 or not. If the answer is in affirmative, whether the provisions of Section 48 of the GVAT Act, 2003 would create first charge over the property which is already mortgaged in favour of a secured creditor. 5. The said questions are no more res-integra, in view of the decision of the co-ordinate bench of this Court rendered in the case of Kalupur Commercial Cooperative Bank Ltd. (supra), wherein it is held as under : 15. The plain reading of Section 48 of the VAT Act indicates that it starts with a non-obstante clause notwithstanding anything to the contrary contained in any law for the time being in force. Section 48 of the VAT Act creates first charge on the property. The issue as regards the claim of priority of the secured creditor vis-a-vis the first charge of the property under the State Legislation was considered by the Supreme Court in the case of Central Bank of India vs. State of Kerala ors, reported in (2009) 4 SCC 94. The Supreme Court, in the said decision to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or. It does not create first charge in favour of the secured creditor. 116. The non obstante clauses contained in Section 34(1) of the DRT Act and Section 35 of the Securitisation Act give overriding effect to the provisions of those Acts only if there is anything inconsistent contained in any other law or instrument having effect by virtue of any other law. In other words, if there is no provision in the other enactments which are inconsistent with the DRT Act or Securitisation Act, the provisions contained in those Acts cannot override other legislations. Section 38C of the Bombay Act and Section 26B of the Kerala Act also contain non obstante clauses and give statutory recognition to the priority of State s charge over other debts, which was recognized by Indian High Courts even before 1950. In other words, these sections and similar provisions contained in other State legislations not only create first charge on the property of the dealer or any other person liable to pay sales tax, etc. but also give them overriding effect over other laws. 126. While enacting the DRT Ac t an d Securitisation Act, Parliament was aware of the law laid down by this Court wherein pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the non obstante clauses contained in Section 34(1) of the DRT Act and Section 35 of the Securitisation Act vis a vis Section 38C of the Bombay Act and Section 26B of the Kerala Act and similar other State legislations only if there was a specific provision in the two enactments creating first charge in favour of the banks, financial institutions and other secured creditors but as the Parliament has not made any such provision in either of the enactments, the first charge created by the State legislations on the property of the dealer or any other person, liable to pay sales tax etc., cannot be destroyed by implication or inference, notwithstanding the fact that banks, etc. fall in the category of secured creditors. 16. Indisputably, the judgment of the Apex Court in the case of Central Bank of India (supra) was prior to the amendment in the Act, 2002 and 1993 respectively. However, what is important are the observations of the Supreme Court as contained in para-126 of this decision quoted above. The Supreme Court observed that while enacting the DRT Act, the Parliament was aware of the law laid down by the Supreme Court, wherein priority of the State dues was recognized. If ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nte clause is a legislative device which is usually employed to give overriding effect to certain provision over some contrary provision that may be found either in the same enactment or some other enactment, that is to say, to avoid the operation and effect of all contrary provisions. (iv) In Chandavarkar Sita Ratna Rao v. Ashalata S. Guram, [1986] 4 SCC 447, at Paragraph 67, the Supreme Court held as follows: 67. A clause beginning with the expression notwithstanding any thing contained in this Act or in some particular provision in the Act or in some particular Act or in any law for the time being in force, or in any contract is more often than not appended to a section in the beginning with a view to give the enacting part of the section in case of conflict an overriding effect over the provision of the Act or the contract mentioned in the non- obstante clause. It is equivalent to saying that in spite of the provision of the Act or any other Act mentioned in the non-obstante clause or any contract or document mentioned the enactment following it will have its full operation or that the provisions embraced in the nonobstante clause would not be an impediment for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the legislature by directing its attention not merely to the clauses to be construed but to the entire statute; it must compare the clause with the other parts of the law and the setting in which the clause to be interpreted occurs. 105. In Madhav Rao Jivaji Rao Scindia v. Union of India and another [(1971) 1 SCC 85], Hidayatullah, C.J. observed that the non obstante clause is no doubt a very potent clause intended to exclude every consideration arising from other provisions of the same statute or other statute but for that reason alone we must determine the scope of that provision strictly. When the section containing the said clause does not refer to any particular provisions which it intends to override but refers to the provisions of the statute generally, it is not permissible to hold that it excludes the whole Act and stands all alone by itself. A search has, therefore, to be made with a view to determining which provision answers the description and which does not. 106. In R.S. Raghunath v. State of Karnataka and another [(1992) 1 SCC 335], a three-Judge Bench referred to the earlier judgments in Aswini Kumar Ghose v. Arabinda Bose [AIR 1952 SC 369], Dominion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an impediment for the operation of the enactment or the provision in which the nonobstante clause occurs. [See Principles of Statutory Interpretation , 9th Edition by Justice G.P. Singh Chapter V, Synopsis IV at pages 318 319] 22. When two or more laws or provisions operate in the same field and each contains a non-obstante clause stating that its provision will override those of any other provisions or law, stimulating and intricate problems of interpretation arise. In resolving such problems of interpretation, no settled principles can be applied except to refer to the object and purpose of each of the two provisions, containing a non-obstante clause. Two provisions in same Act each containing a nonobstante clause, requires a harmonious interpretation of the two seemingly conflicting provisions in the same Act. In this difficult exercise, there are involved proper consideration of giving effect to the object and purpose of two provisions and the language employed in each. [See for relevant discussion in para 20 in Shri Swaran Singh Anr. v. Shri Kasturi Lal; (1977) 1 SCC 750] 23. Normally the use of the phrase by the Legislature in a statutory provision like notw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct must prevail. (2) If the object behind the two statutes is to be looked into, namely, the Act and the Motor Vehicles Act, the Act which was passed to meet an emergency arising out of the Chinese invasion of India in 1962 must prevail over the provisions contained in Chapter IV-A of the Motor Vehicles Act which were meant to meet a situation arising out of the taking over of the motor transport by a State. (3) The language of Section 43 was found to be more emphatic than the language of Section 68-B. The Supreme Court took notice of the fact that Section 43 provided that the provisions of the Act or any rule made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than the Act. This, according to the Supreme Court, was indicative of the intention of the legislature that the Act shall prevail over the other statutes. 26. The observations made in para-12 of the judgment are relevant. The observations are as under : 12. This argument is met on behalf of the State by reference to S. 43 of the Act which lays down that the provisions of this Act or any rule made thereunder or any order made under any su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the legislature intended that the emergency legislation in the Act will be paramount if there is any inconsistency between it and any other provision of any other law whatsoever. Such a provision is understandable in view of the emergency which led to the passing of the Act. 27. The principles discernible from the decision of the Supreme Court in the case of Kumaon Motor Owners Union Ltd. (supra) are that, if there is a conflict between the provisions of the two Acts and if there is nothing repugnant, the provisions in the later Act would prevail. The second principle discernible is that, while resolving the conflict, the court must look into the object behind the two statutes. To put it in other words, what necessitated the legislature to enact a particular provision, later in point of time, which may be in conflict with the provisions of the other Acts. The third principle discernible is that the court must look into the language of the provisions. If the language of a particular provision is found to be more emphatic, the same would be indicative of the intention of the legislature that the Act shall prevail over the other statutes. 28. The Supreme Court, in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, [1956] SCR 603. 10. We may notice that the Special Court had in another case dealt with a similar contention. In Bhoruka Steel Ltd. v. Fairgrowth Financial Services Ltd. [1997] v. 89 Company Cases 547, it had been contended that recovery proceedings under the Special Court Act should be stayed in view of the provisions of the 1985 Act. Rejecting this contention, the Special Court had come to the conclusion that the Special Court Act being a later enactment would prevail. The head note which brings out succinctly the ratio of the said decision is as follows : Where there are two special statutes which contain non- obstante clauses the later statute must prevail. This is because at the time of enactment of the later statute, the Legislature was aware of the earlier legislation and its non-obstante clause. If the Legislature still confers the later enactment with a non-obstante clause it means that the Legislature wanted that enactment to prevail. If the Legislature does not want the later enactment to prevail then it could and would provide in the later enactment that the provisions of the earlier enactment continue to apply. The Special Court (Trial of Offences ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pretation that if one construction leads to a conflict, whereas on another construction, two Acts can be harmoniously constructed then the latter must be adopted. If an interpretation is given that the Sick Industrial Companies (Special Provisions) Act, 1985, is to prevail then there would be a clear conflict. However, there would be no conflict if it is held that the 1992 Act is to prevail. On such an interpretation the objects of both would be fulfilled and there would be no conflict. It is clear that the Legislature intended that public monies should be recovered first even from sick companies. Provided the sick company was in a position to first pay back the public money, there would be no difficulty in reconstruction. The Board for Industrial and Financial Reconstruction against considering a scheme for reconstruction has to keep in mind the fact that it is to be paid off or directed by the Special Court. The Special Court can, if it is convinced grant time or instalments. 11. We are in agreement with the aforesaid decision or the case, more so when we find that whenever the Legislature wishes to do so it makes appropriate provisions in the Act in that behalf. Mrs. Shir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r : MINISTRY OF FINANCE (Department of Financial Services) NOTIFICATION New Delhi, the 1st September, 2016 S.O. 2831 (E). In exercise of the powers conferred by sub-section (2) of section 1 of the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016 (44 of 2016), the Central Government hereby appoints the 1st day of September, 2016 as the date on which the following provisions of the said Act shall come into force, namely :- Sr. No. Sections 1 Sections 2 and 3 (both inclusive); 2 Sections 4 [except clause (xiii)]; 3 Section 5 and 6 (both inclusive); 4 Sections 8 to 16 (both inclusive); 5 Sections 22 to 31 (both inclusive); 6 Sections 33 to 44 (both inclusive). [F.No. 3/5/2016 - DRT] ANANDRAO VISHNU PATIL, Jt. Secy. 32. Section 31B has been i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of Objects and Reasons of the SARFAESI Act. Thus, an interpretation that, while the secured creditors will have priority in case they proceed under the RDB Act they will not have such priority if they proceed under the SARFAESI Act, will lead to an absurd situation and, in fact, would frustrate the object of the SARFAESI Act which is to enable fast recovery to the secured creditors. 36. The insertion of Section 31B of the RDB Act will give priority to the secured creditors even over the subsisting charges under other laws on the date of the implementation of the new provision, i.e. 1.9.2016. The Supreme Court, in the case of State of Madhya Pradesh v. State Bank of Indore, (2001) 126 STC 1 (SC), has held that a provision creating first charge over the property would operate over all charges that may be in force. The following observations made in para 5 of the said judgment are relevant: 5. Section 33-C creates a statutory charge that prevails over any charge that may be in existence. Therefore, the charge thereby created in favour of the State in respect of the sales tax dues of the second respondent prevailed over the charge created in favour of the bank in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atutory provision. Therein, consideration was also made even in reference to Section 100 of the Act of 1882. It is submitted that judgment of the Apex Court in the case of Central Bank of India (supra) was prior to the amendment in the Act of 2002 and 1993 thus would not apply to the cases governed by the amended provisions. In the case in hand, the attachment of property by the State is prior to the amendment thus amended provision would not apply. Section 47 of the Act of 2003 was invoked prior to the amendment. We are yet considering the effect of the amended provision. The Apex Court has made analysis of a provision of first charge vis a vis secured creditor in the case of Central Bank of India (supra). The first charge was given supremacy than rights under mortgagee or to a secured creditor. The distinction between first charge and secured creditor is necessary to analyse scope of Section 26E of the Act of 2002 and Section 31B of the Act of 1993. The amended provisions are having overriding effect and give priority to the secured creditors vis a vis State dues. It does not, however, nullify the effect of first charge created on the property under the State Act. If inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be subject to the provisions of that code. 9. Thus, the aforesaid statute makes it very clear that the dues of the bank are to be recovered at the first instance. Section 33 of the MP VAT Act, 2002 reads as under:- 33 : Tax to be first charge (1) Notwithstanding anything to the contrary, contained in any law for the time being in force and subject to the provisions of section 530 of the Companies Act, 1956 (No.1 of 1956), any amount of tax and/ or penalty or interest, if any, payable by a dealer or other person under this Act shall be first charge on the property of the dealer or such person. (2) Notwithstanding anything contained in this Act, where a dealer or person is in default or is deemed to be in default under clause (a) of subsection (11) of section 24 and whose property is being sold by a bank or financial institution for recovery of its loan, the Commissioner may forgo the right of first charge as mentioned in subsection (1) against the property sold on the following conditions:- (a) if the arrears of tax, penalty, interest or part thereof or any other amounts is up to 25 percent of the total auction value, the arrears shall be paid in full by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ghts of a Third party Purchaser of the Mortgaged property in question. 40. Sanjay Kishan Kaul, CJ. (as His Lordship then was) observed as under : ...We are of the view that if there was at all any doubt, the same stands resolved by view of the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016, Section 41 of the same seeking to introduce Section 31B in the Principal Act, which reads as under:- 31B. Notwithstanding anything contained in any other law for the time being in force, the rights of secured creditors to realise secured debts due and payable to them by sale of assets over which security interest is created, shall have priority and shall be paid in priority over all other debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or local authority. Explanation. - For the purposes of this section, it is hereby clarified that on or after the commencement of the Insolvency and Bankruptcy Code, 2016, in cases where insolvency or bankruptcy proceedings are pending in respect of secured assets of the borrower, priority to secured credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r or, as the case may be, person. [(2)(2) The first charge as mentioned in subsection (1) shall be deemed to have been created on the expiry of the period specified in sub-section (4) of section 32, for the payment of tax, penalty, interest, sum forfeited, fine or any other amount. 43. Thus, Section 37 of the MVAT Act, 2002, although starts with a non-obstante clause notwithstanding anything contained in any contract to the contrary , yet it clarifies that the same shall be subject to any provision regarding creation of the first charge in any Central Act, any amount of tax, penalty, interest, sum forfeited or any other sum payable by a dealer or any other person under the Act shall be the first charge on the property of the dealer. Clause (2) proceeds to explain the term first charge . The first charge is deemed to have been created on the expiry of the period specified in sub- section (4) of Section 32, for the payment of tax, penalty, interest, sum forfeited, fine or any other amount. This is further suggestive of the fact that the first charge would be deemed to be created only after the tax, penalty, interest is determined in the assessment proceedings. Section 48 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration before the Full Bench of the Madras High Court in the matter of Assistant Commissioner (CT) Chennai vs. the Indian Overseas Bank decided on 11.11.2016 and the Full Bench has observed in paragraph 4 of the Judgment that the law having now been come into force naturally it would govern the rights of the parties in respect of even lis pendence We do not propose to analyse the Full Bench judgment delivered by the Madras High Court. 45. The Madras High Court (Madurai Bench), in the case of Indian Overseas Bank v. The Sub Registrar, Tuticorin Keelur, Tuticorin District and others, (Writ Petition No.14618 of 2018, decided on 18th December 2018), had the occasion to consider Section 31B of the RDB Act. The Division Bench of the Madras High Court observed as under : Similar issue came up for consideration before this Court in W.P.(MD).No.10724 of 2018, dated 06.12.2018, Central Bank of India Vs the Joint Sub-Registrar No.1, wherein this Court has held as follows:- 7. In Assistant Commercial Tax Officer (CT) v. Indian Overseas Bank reported in 2016 (6) CTC 769, the Full Bench of this Court has held as under: ... 2. We are of the view that if there was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l right for recovery of its debts over a mortgagee or pledgee of goods or a secured creditor. It is only in cases where the Crown s right and that of the subject meet at one and the same time that the Crown is in general preferred. Where the right of the subject is complete and perfect before that the King commences, the rule does not apply, for there is no point of time at which the two rights are at conflict, nor can there be a question which of the two ought to prevail in a case where one, that of the subject, has prevailed already. Sec. 158(1) of the Karnataka Land Revenue Act specifically provides that the claim of the State Government to any moneys recoverable under the provisions of Chapter XVI shall have precedence over any other debts, demand or claim whatsoever including in respect of mortgage. Sec. 158 of the Karnataka Land Revenue Act not only gives a statutory recognition to the doctrine of State s priority for recovery of debts but also extends its applicability over private debts forming subject matter of mortgage, judgmentdecree, execution or attachment and the like.-- Builders Supply Corporation vs. Union of India AIR 1965 SC 1061 relied on; Collector of Aurangabad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s dues over the rights of the appellant bank and the property of the partners shall also be liable to be proceeded against. No useful purpose would therefore, be served by allowing the appeal which will only further complicate the controversy.--CST vs. Radhakishan AIR 1979 SC 1588 distinguished. State had preferential right to recover salestax dues over the rights of bank and property of the partners could also be liable to be proceeded against for the dues of the firm. 47. Thus, the dictum of law as laid by the Supreme Court in the aforesaid decision is that the State s preferential right to the recovery of debts over other creditors is confined to ordinary or unsecured creditors. The Supreme Court took the view that the Common Law of England or the principles of equity and good conscience (as applicable to India) do not accord the Crown a preferential right for the recovery of its debts over a mortgagee or pledgee of the goods or a secured creditor. It is true that ultimately the bank was not granted any relief, but the same was not granted in the peculiar facts of the case. Otherwise, the principle of law as explained is very clear. In no uncertain terms, the Supreme Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt referred to a judgment in Giles v. Grover (1832) (131) English Reports 563 in which it has been held that the Crown has no precedence over a pledgee of goods. In the present case, the common law of England qua Crown debts became applicable by virtue of Article 372 of the Constitution which states that all laws in force in the territory of India immediately before the commencement of the Constitution shall continue in force until altered or repealed by a competent legislature or other competent authority. In fact, in Collector of Aurangabad v. Central Bank of India [1967] 3 SCR 855 after referring to various authorities held that the claim of the Government to priority for arrears of income tax dues stems from the English common law doctrine of priority of Crown debts and has been given judicial recognition in British India prior to 1950 and was therefore law in force in the territory of India before the Constitution and was continued by Article 372 of the Constitution (at page 861, 862). In the present case, as has been noted above, the lien possessed by the Stock Exchange makes it a secured creditor. That being the case, it is clear that whether the lien under Rule 43 is a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therein assumes significance. The amount could be said to be payable by a dealer on account of tax, interest or penalty once the same is assessed in the assessment proceedings and the amount is determined accordingly by the authority concerned. Without any assessment proceedings, the amount cannot be determined, and if the amount is yet to be determined, then prior to such determination there cannot be any application of Section 48 of the VAT Act. We may also refer to Section 47 of the VAT Act. Section 47 of the VAT Act is with respect to transfer of property by the dealer to defraud the Revenue. According to Section 47, if a dealer creates a charge over his property by way of sale, mortgage, exchange or any other mode of transfer after the tax has become due, then such transfer would be a void transfer. The reason why we are referring to Section 47 is that the phrase therein after any tax has become due from him assumes significance. The same is suggestive of the fact that before the assessment proceedings, or, to put it in other words, before a particular amount is determined and becomes due to be payable if there is any transfer of property of the dealer, such transfer would ..... X X X X Extracts X X X X X X X X Extracts X X X X
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