https://www.taxtmi.com/caselaws?id=301281 In company liquidation, the statutory distribution scheme under the Companies Act gives overriding priority to workmen's dues and secured creditors, and sales tax dues cannot displace that priority or claim a superior charge through revenue recovery or attachment under State law. Such tax claims must be lodged within the liquidation process and do not override the pari passu framework. Where company assets are sold through the Official Liquidator, auction purchasers take the property free of pre-liquidation tax liabilities, and pre-existing tax attachments must be removed so that clear title passes. The pre-liquidation tax debt remains payable only in liquidation, not by the purchaser. en-us Thu, 15 May 2008 00:00:00 +0530 Thu, 24 Mar 2022 10:38:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=301281 In company liquidation, the statutory distribution scheme under the Companies Act gives overriding priority to workmen's dues and secured creditors, and sales tax dues cannot displace that priority or claim a superior charge through revenue recovery or attachment under State law. Such tax claims must be lodged within the liquidation process and do not override the pari passu framework. Where company assets are sold through the Official Liquidator, auction purchasers take the property free of pre-liquidation tax liabilities, and pre-existing tax attachments must be removed so that clear title passes. The pre-liquidation tax debt remains payable only in liquidation, not by the purchaser. Case-Laws Companies Law Thu, 15 May 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=301281