https://www.taxtmi.com/caselaws?id=787013 Section 9(2) of the Central Sales Tax Act is only a machinery provision for assessment and recovery and does not create a statutory first charge on a corporate debtor's assets. Because no first charge arises under the CST Act, CST dues cannot be treated as secured debt in insolvency proceedings, unlike a situation where a statute such as the Gujarat VAT Act expressly creates a first charge. On that basis, rejection of the resolution plan and declaration of the State Tax Officer as a secured creditor were legally unsustainable. The impugned orders were set aside and the resolution plan approval process was restored before the Adjudicating Authority. en-us Wed, 18 Feb 2026 00:00:00 +0530 Wed, 25 Feb 2026 07:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787013 Section 9(2) of the Central Sales Tax Act is only a machinery provision for assessment and recovery and does not create a statutory first charge on a corporate debtor's assets. Because no first charge arises under the CST Act, CST dues cannot be treated as secured debt in insolvency proceedings, unlike a situation where a statute such as the Gujarat VAT Act expressly creates a first charge. On that basis, rejection of the resolution plan and declaration of the State Tax Officer as a secured creditor were legally unsustainable. The impugned orders were set aside and the resolution plan approval process was restored before the Adjudicating Authority. Case-Laws IBC Wed, 18 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787013