Non-paid dues of Sales Tax department do not constitute a first ...

Non-paid sales tax dues don't create 1st charge over property. Secured creditors precede. Auction buyers get valid titles despite delays.

Case Laws VAT and Sales Tax

August 1, 2024

Non-paid dues of Sales Tax department do not constitute a first charge over property. The first charge belongs to Secured Creditors or the State/Central Government (Crown's debt). Bonafide purchasers who acquired properties through auctions following loan defaults by predecessors hold valid titles. The charge of a Secured Creditor precedes an Unsecured Creditor's (Crown's debt) charge. State authorities cannot reject mutation applications by auction purchasers. Delay is irrelevant as purchasers have invested substantial amounts and acquired valid titles through Sale Certificates. Authorities are directed to mutate purchasers' names in revenue records by quashing State's attachment/charge, as Banks held the first charge. Petitions allowed.

View Source

← Previous Next →

Non-paid dues of Sales Tax department do not constitute a first ...

Non-paid sales tax dues don't create 1st charge over property. Secured creditors precede. Auction buyers get valid titles despite delays.

Case Laws VAT and Sales Tax

August 1, 2024

You may also like:

Recovery of sales tax dues - encumbered property or not - liability of auction purchasers - this is a clear case in which the Sales Tax Department had a charge on the...

Secured creditor has priority over Sales Tax Department for recovering dues from borrower/entity. Section 26E of SARFAESI Act and Section 38 of 2002 Act considered....

Doctrine of constitutional priority - Supremecy of attachment passed by the Tax Recovery Officer / Income Tax Department or to the mortgage created in favour of the...

Attachment of secured assets - recovery of sales tax dues - the secured creditor would have a first charge over an asset and the charge created in favour of the State of...

Priority of secured creditors under the SARFAESI Act over claims by the Income Tax Department. The respondent mortgaged the property to the petitioner in 2013-14, prior...

Priority of dues between the Central Excise Department and secured creditors in cases of attachment of properties for recovery. The Supreme Court held that the Central...

Debts due to secured creditors under SARFAESI Act have priority over debts under FEMA. SARFAESI Act being a later enactment prevails over earlier FEMA. SARFAESI Act...

Recovery of customs duty - warehoused goods - priority to recover dues - attachment of property - charge created by the second respondent Bank / financial institution,...

Recovery of tax dues - Attachment of assets - dues of MVAT Authorities’ have charge in priority to the secured creditors or not - This judgment reaffirms the supremacy...

Secured creditor's priority charge over dues upheld. Section 26E of SARFAESI Act grants secured creditors priority over all other debts and taxes. Petitioner bank...

Restraint from selling or alienating the property - Priories of secured creditors over State against tax dues - In the present case, it is clear that the charge that...

Priority of the charge - statutory charge in favour of the Sales Tax Department - if any Central Statute creates priority of a charge in favour of a secured creditor,...

Under the SARFAESI Act, a bank's charge takes priority over the State's claim for outstanding dues related to specific land. The High Court held that the charge created...

Recovery of dues - priority over the charges - Apparently, the petitioner-Bank is the secured creditor and has created the first charge over the property in question as...

Recovery of dues (secured debt) - secured creditor has priority over the right claimed by the Revenue over secured debt or not - It is quite clear and evident from...

Quick Updates: