Central Exicse-PME/PMP cases-Recovery of dues from M/s Punjstar Standard Electronics, Mohali - Regarding - Central Excise - 15/219/81-CX.1

Central Exicse-PME/PMP cases-Recovery of dues from M/s Punjstar Standard Electronics, Mohali - Regarding F. No. 15/219/81-CX.1 Dated 12-12-1988 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Exicse-PME/PMP cases-Recovery of dues from M/s Punjstar Standard Electronics, Mohali - Regarding. I am directed to refer to your C. No. VIII (Law) Sqrs / Chg / Misc. 14/85/Pt. on the above subject. Ministry of Law was consulted in this matter. It is opined that according to the provisions of the Companies Act, 1956, secured creditor may not claim priority over the revenues and taxes of the Government where a company is in the process of liquidation. But if there is no winding up proceedings pending against the company, the secured creditors will have a prior claim over the unsecured creditors. Extract of the opinion of the Law Ministry is enclosed herewith. (Not Printed) 2. It is requested that suitable action may be taken to safeguard revenue interest in the light of the advice given by Ministry of Law.