https://www.taxtmi.com/caselaws?id=386281 Section 48 of the Gujarat VAT Act creates a first charge on a dealer's property for tax, interest and penalty, but the later priority provisions in Sections 26E and 31B of the SARFAESI and recovery laws give secured creditors precedence over other debts and governmental dues. Read with the non-obstante clauses in Sections 35 and 37 of SARFAESI, the statutory scheme indicates that a bank's security interest, once enforced and possessed before the State's liability is finally assessed and crystallised, is not displaced by the State's VAT claim. The first charge can operate only after tax becomes due and payable, and cannot override the secured creditor's protected priority unless the statute clearly says so. en-us Mon, 16 Sep 2019 00:00:00 +0530 Wed, 25 Sep 2019 14:18:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=386281 Section 48 of the Gujarat VAT Act creates a first charge on a dealer's property for tax, interest and penalty, but the later priority provisions in Sections 26E and 31B of the SARFAESI and recovery laws give secured creditors precedence over other debts and governmental dues. Read with the non-obstante clauses in Sections 35 and 37 of SARFAESI, the statutory scheme indicates that a bank's security interest, once enforced and possessed before the State's liability is finally assessed and crystallised, is not displaced by the State's VAT claim. The first charge can operate only after tax becomes due and payable, and cannot override the secured creditor's protected priority unless the statute clearly says so. Case-Laws Indian Laws Mon, 16 Sep 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=386281