https://www.taxtmi.com/caselaws?id=171339 A State statutory first charge for sales tax dues under the Kerala General Sales Tax Act cannot override the liquidation priority scheme in the Companies Act, 1956. In winding up, section 529A gives overriding priority to workmen's dues and secured creditors, and section 530 makes tax claims subordinate to that scheme. Section 537(2) also does not permit the State to continue recovery against property already sold by the company court free of encumbrances, because such recovery would unsettle the liquidation process and the court-controlled distribution of assets. The sale and priority determination remain governed by the company court's liquidation framework. en-us Wed, 18 Dec 2013 00:00:00 +0530 Wed, 15 Jul 2015 13:07:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=171339 A State statutory first charge for sales tax dues under the Kerala General Sales Tax Act cannot override the liquidation priority scheme in the Companies Act, 1956. In winding up, section 529A gives overriding priority to workmen's dues and secured creditors, and section 530 makes tax claims subordinate to that scheme. Section 537(2) also does not permit the State to continue recovery against property already sold by the company court free of encumbrances, because such recovery would unsettle the liquidation process and the court-controlled distribution of assets. The sale and priority determination remain governed by the company court's liquidation framework. Case-Laws VAT and Sales Tax Wed, 18 Dec 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=171339