https://www.taxtmi.com/caselaws?id=335114 A statutory first charge for sales tax dues prevails over a secured creditor's claim under the SARFAESI regime, including the non obstante clause in section 35, where the Tamil Nadu VAT framework creates priority in favour of the State. The document also states that an auction purchaser who paid the bid amount on the basis of the bank's assurance that the tax issue would be cleared cannot later be saddled with that encumbrance. In that situation, the purchaser may insist on execution of the sale deed free from the sales tax burden, failing which refund of the sale consideration is available. en-us Mon, 14 Nov 2016 00:00:00 +0530 Sat, 26 Nov 2016 10:31:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=335114 A statutory first charge for sales tax dues prevails over a secured creditor's claim under the SARFAESI regime, including the non obstante clause in section 35, where the Tamil Nadu VAT framework creates priority in favour of the State. The document also states that an auction purchaser who paid the bid amount on the basis of the bank's assurance that the tax issue would be cleared cannot later be saddled with that encumbrance. In that situation, the purchaser may insist on execution of the sale deed free from the sales tax burden, failing which refund of the sale consideration is available. Case-Laws VAT and Sales Tax Mon, 14 Nov 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=335114