https://www.taxtmi.com/caselaws?id=163163 A statutory first charge for sales tax dues did not prevail over a bank's prior perfected mortgage, because the State's preferential claim is generally confined to unsecured creditors and the record did not show completed recovery steps before the bank's security attached. The bank was therefore entitled to proceed against the mortgaged property. Section 16B of the Himachal Pradesh General Sales Tax Act, 1968, was also held ultra vires to the extent it conflicted with the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, since the central enactment's overriding scheme and non obstante clause protected the bank's rights in secured assets. The bank's secured interest was upheld and sale of the property in accordance with law was permitted. en-us Wed, 02 Jan 2008 00:00:00 +0530 Wed, 17 Dec 2014 09:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=163163 A statutory first charge for sales tax dues did not prevail over a bank's prior perfected mortgage, because the State's preferential claim is generally confined to unsecured creditors and the record did not show completed recovery steps before the bank's security attached. The bank was therefore entitled to proceed against the mortgaged property. Section 16B of the Himachal Pradesh General Sales Tax Act, 1968, was also held ultra vires to the extent it conflicted with the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, since the central enactment's overriding scheme and non obstante clause protected the bank's rights in secured assets. The bank's secured interest was upheld and sale of the property in accordance with law was permitted. Case-Laws VAT and Sales Tax Wed, 02 Jan 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=163163