https://www.taxtmi.com/caselaws?id=214130 A mortgage created in favour of a secured creditor during pending income-tax proceedings was protected under the proviso to section 281 because it was supported by adequate consideration and the creditor had no notice of the tax proceedings or liability before the charge was created. The Court also held that section 142 of the Customs Act is only a recovery mechanism and does not create a first charge or statutory priority in favour of Customs. In the absence of express legislative priority, customs dues cannot override secured debt. The mortgage was therefore upheld against the Revenue, and the secured creditor's priority was preserved. en-us Wed, 22 Jun 2011 00:00:00 +0530 Mon, 23 Apr 2018 10:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=214130 A mortgage created in favour of a secured creditor during pending income-tax proceedings was protected under the proviso to section 281 because it was supported by adequate consideration and the creditor had no notice of the tax proceedings or liability before the charge was created. The Court also held that section 142 of the Customs Act is only a recovery mechanism and does not create a first charge or statutory priority in favour of Customs. In the absence of express legislative priority, customs dues cannot override secured debt. The mortgage was therefore upheld against the Revenue, and the secured creditor's priority was preserved. Case-Laws Income Tax Wed, 22 Jun 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=214130