https://www.taxtmi.com/caselaws?id=386250 After registration of the security interest, the secured creditor's priority under the SARFAESI Act and the RDB Act prevails over the State's tax claim. The Court held that Section 26E of the SARFAESI Act and Section 31B of the RDB Act, read with their non-obstante clauses, give precedence to secured debts over the VAT Act's first-charge provisions, and that the State's VAT claim crystallises only after assessment. It further held that, once the properties were sold under the SARFAESI mechanism, the State could not proceed against the purchasers and could recover only any surplus remaining after satisfaction of the secured debt. en-us Mon, 23 Sep 2019 00:00:00 +0530 Fri, 08 Nov 2024 14:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=386250 After registration of the security interest, the secured creditor's priority under the SARFAESI Act and the RDB Act prevails over the State's tax claim. The Court held that Section 26E of the SARFAESI Act and Section 31B of the RDB Act, read with their non-obstante clauses, give precedence to secured debts over the VAT Act's first-charge provisions, and that the State's VAT claim crystallises only after assessment. It further held that, once the properties were sold under the SARFAESI mechanism, the State could not proceed against the purchasers and could recover only any surplus remaining after satisfaction of the secured debt. Case-Laws VAT / Sales Tax Mon, 23 Sep 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=386250