https://www.taxtmi.com/caselaws?id=433546 The Gujarat High Court noted that a statutory first charge under the Gujarat VAT Act arises only when the tax liability is finally assessed and becomes due and payable. Where the property had already been mortgaged, enforced under the SARFAESI framework, and sold before the VAT charge was created and mutated, the secured creditor's priority prevailed. The Court applied the overriding priority provisions in section 26E of the SARFAESI Act and section 31B of the Recovery of Debts and Bankruptcy Act, and held that the State's later VAT claim could not defeat the secured creditor's rights. The revenue charge entries were therefore liable to be deleted. en-us Sat, 07 Jan 2023 00:00:00 +0530 Fri, 03 Feb 2023 06:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=433546 The Gujarat High Court noted that a statutory first charge under the Gujarat VAT Act arises only when the tax liability is finally assessed and becomes due and payable. Where the property had already been mortgaged, enforced under the SARFAESI framework, and sold before the VAT charge was created and mutated, the secured creditor's priority prevailed. The Court applied the overriding priority provisions in section 26E of the SARFAESI Act and section 31B of the Recovery of Debts and Bankruptcy Act, and held that the State's later VAT claim could not defeat the secured creditor's rights. The revenue charge entries were therefore liable to be deleted. Case-Laws VAT and Sales Tax Sat, 07 Jan 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=433546