https://www.taxtmi.com/caselaws?id=313621 Once a security interest is registered under the SARFAESI Act, the secured creditor's claim takes priority over governmental tax dues, and section 35 gives the SARFAESI regime overriding effect over inconsistent state law claims of first charge. The Gujarat HC analysis states that, where the mortgaged property was taken into possession and sold through the statutory auction process, the State's later VAT charge under section 48 could not defeat the bank's prior secured interest. The secured creditor was therefore entitled to priority, removal of the revenue charge, and reflection of the sale certificate in the revenue record. en-us Wed, 29 Jun 2022 00:00:00 +0530 Thu, 25 Apr 2024 06:30:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313621 Once a security interest is registered under the SARFAESI Act, the secured creditor's claim takes priority over governmental tax dues, and section 35 gives the SARFAESI regime overriding effect over inconsistent state law claims of first charge. The Gujarat HC analysis states that, where the mortgaged property was taken into possession and sold through the statutory auction process, the State's later VAT charge under section 48 could not defeat the bank's prior secured interest. The secured creditor was therefore entitled to priority, removal of the revenue charge, and reflection of the sale certificate in the revenue record. Case-Laws VAT and Sales Tax Wed, 29 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313621