Statutory first charge for sales tax dues overrides mortgage claims and survives against a nationalised bank.

Section 11-AAAA of the Rajasthan Sales Tax Act, 1954 creates a statutory first charge on the dealer's property for tax, penalty, interest and other sums payable under the Act, overriding any contrary law. The provision was treated as applying to pending claims, so sales tax dues could be asserted with priority over a bank's mortgage claim. Because the dues were recoverable as arrears of land revenue, the Sales Tax Department was not required to file a separate suit before claiming priority. The bank's status as a nationalised bank did not defeat the statutory charge, and the revisional court would not interfere merely on an alleged error of law where interference was otherwise unwarranted.

---

---

Issues: Whether the sales tax dues under section 11-AAAA of the Rajasthan Sales Tax Act, 1954 had priority as a first charge over the bank's mortgage claim, and whether the revisional court could interfere with the court below's order.

Analysis: Section 11-AAAA creates a statutory first charge over the property of the dealer or other person for tax, penalty, interest and other sums payable under the Act, notwithstanding anything contrary in any other law. The provision was applied to pending claims and was held to govern the present dispute. The tax dues were recoverable as arrears of land revenue, so the Sales Tax Department was not required to institute a separate suit before asserting priority. The bank's status as a nationalised bank did not displace the statutory priority created by the Act. The revisional challenge also failed because the impugned order, even if assumed to contain an error of law, did not warrant interference in revision.

Conclusion: The statutory charge in favour of the sales tax dues prevailed over the bank's claim, and the revision was not maintainable for interference with the order below.

---