https://www.taxtmi.com/caselaws?id=215858 An equitable mortgage created in favour of a financial institution during pending income-tax proceedings was protected by the proviso to section 281(1) because it was supported by loan consideration and the Revenue had given no notice of the proceedings or tax dues to the lender. The mortgage was therefore not void as against the Revenue. The Customs Department also could not claim priority over the secured debt, as section 142 of the Customs Act provides recovery machinery but does not create a first charge or statutory priority in favour of customs dues. In the absence of such a charging provision, the secured creditor's priority was upheld. en-us Wed, 22 Jun 2011 00:00:00 +0530 Wed, 22 Aug 2012 12:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=215858 An equitable mortgage created in favour of a financial institution during pending income-tax proceedings was protected by the proviso to section 281(1) because it was supported by loan consideration and the Revenue had given no notice of the proceedings or tax dues to the lender. The mortgage was therefore not void as against the Revenue. The Customs Department also could not claim priority over the secured debt, as section 142 of the Customs Act provides recovery machinery but does not create a first charge or statutory priority in favour of customs dues. In the absence of such a charging provision, the secured creditor's priority was upheld. Case-Laws Income Tax Wed, 22 Jun 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=215858