https://www.taxtmi.com/caselaws?id=175907 A prior registered mortgage and equitable mortgage created in favour of a secured creditor prevails over the Central Excise Department's claim for duty recovery. The Court applied the settled principle that the Crown's preferential right is limited to ordinary or unsecured creditors and does not defeat a prior perfected security interest. Reliance on Section 29 of the State Financial Corporations Act, 1951 did not alter the secured creditor's priority, and the recovery provisions under Section 11 of the Central Excise Act, 1944 and Section 142 of the Customs Act, 1962 did not displace that prior charge. Attachment and proposed auction could not override the secured creditor's rights. en-us Tue, 30 Jan 2007 00:00:00 +0530 Tue, 08 Dec 2015 16:18:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=175907 A prior registered mortgage and equitable mortgage created in favour of a secured creditor prevails over the Central Excise Department's claim for duty recovery. The Court applied the settled principle that the Crown's preferential right is limited to ordinary or unsecured creditors and does not defeat a prior perfected security interest. Reliance on Section 29 of the State Financial Corporations Act, 1951 did not alter the secured creditor's priority, and the recovery provisions under Section 11 of the Central Excise Act, 1944 and Section 142 of the Customs Act, 1962 did not displace that prior charge. Attachment and proposed auction could not override the secured creditor's rights. Case-Laws Customs Tue, 30 Jan 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=175907