https://www.taxtmi.com/caselaws?id=127787 Sales tax dues are entitled to preferential payment in winding up where the tax had already arisen from taxable sales, but first became payable only within the twelve months before the relevant date. The article treats "due" and "payable" as distinct: liability arose when each taxable sale occurred, while payable status began only on assessment, quantification, and demand. For a provisional liquidator, the relevant date is the date of appointment. On that basis, a sales tax claim satisfying both conditions under section 530(1)(a) of the Indian Companies Act, 1956 is a preferential debt entitled to priority over ordinary creditors. en-us Tue, 12 Aug 1958 00:00:00 +0530 Wed, 27 Nov 2013 14:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=127787 Sales tax dues are entitled to preferential payment in winding up where the tax had already arisen from taxable sales, but first became payable only within the twelve months before the relevant date. The article treats "due" and "payable" as distinct: liability arose when each taxable sale occurred, while payable status began only on assessment, quantification, and demand. For a provisional liquidator, the relevant date is the date of appointment. On that basis, a sales tax claim satisfying both conditions under section 530(1)(a) of the Indian Companies Act, 1956 is a preferential debt entitled to priority over ordinary creditors. Case-Laws VAT and Sales Tax Tue, 12 Aug 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=127787