9911796707
TMI Blog2019 (2) TMI 2037X X X X Extracts X X X X X X X X Extracts X X X X ..... ertiorari to quash the proceedings of the respondent in F.No.S.Misc/391/2017-Bonds (Sea), dated 20.07.2018. 3. Property admeasuring 2.12.1/2 acres situated at Panchetty Village, Ponneri Taluk, Chengelpet District, Red hills (property in question) was originally owned and possessed by one Mr. Pramod Kumar Saraf. The property was mortgaged to Indian Overseas Bank for financial accommodation for an entity by the name and style of DDS Steel Rolling Mills Pvt. Ltd, in the year 2008. 4. It appears that there was a default committed in repayment of the loan and as such, the Bank took possession of the property on 09.07.2010 in terms of Section 13(4) of the Securities and Reconstruction of Financial Assets and Enforcement of Security Interest Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er thereafter approached the office of the Sub-Registrar, Red hills, seeking registration of the property when it was informed that there was a subsisting attachment of the property and as such the sale could not be registered. It is only thereafter that the petitioner came to be aware that on 14.12.2010, the Commissioner of Customs had ordered the attachment of the properties owned by Jai Bhavani and SDS that included the properties of its Director, more specifically the property in question. 8. The Assistant Commissioner of Customs/R1 has filed a counter touching upon the merits of the assessment made in the cases of Jai Bhavani and SDS as well as various irregularities stated to have been committed by the aforesaid two assessees, as rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of dues at paragraph No.26 extracted below: '26. In the light of the above discussion, we conclude, (i) Generally, the dues to Government, i.e., tax, duties, etc. (crown's debts) get priority over ordinary debts. (ii) Only when there is a specific provision in the statue claiming "first charge" over the property, the Crown's debt is entitled to have priority over the claim of others. (iii) Since there is no specific provision claiming "first charge"in the Central Excise Act and the Customs Act, the claim of the Central Excise Department cannot have precedence over the claim of secured creditor, viz., the petitioner-Bank. (iv) In the absence of such specific provision in the Central Excise Act as well as in Custom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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