https://www.taxtmi.com/caselaws?id=799983 Central Sales Tax recovery under Section 9(2) uses the procedural machinery of the applicable State sales-tax law but does not create a statutory first charge over a dealer's property or incorporate the substantive charge under the Gujarat VAT law. Recovery machinery alone cannot create a security interest. The Explanation to the Insolvency and Bankruptcy Code definition of security interest is clarificatory and retrospective, excluding interests arising solely by operation of law unless supported by an agreement or arrangement. Consequently, outstanding Central Sales Tax dues without contractual security cannot constitute secured debt, and the State Tax Department cannot claim secured-creditor status or distribution priority. en-us Fri, 25 Sep 2026 00:00:00 +0530 Wed, 30 Sep 2026 08:41:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=799983 Central Sales Tax recovery under Section 9(2) uses the procedural machinery of the applicable State sales-tax law but does not create a statutory first charge over a dealer's property or incorporate the substantive charge under the Gujarat VAT law. Recovery machinery alone cannot create a security interest. The Explanation to the Insolvency and Bankruptcy Code definition of security interest is clarificatory and retrospective, excluding interests arising solely by operation of law unless supported by an agreement or arrangement. Consequently, outstanding Central Sales Tax dues without contractual security cannot constitute secured debt, and the State Tax Department cannot claim secured-creditor status or distribution priority. Case-Laws IBC Fri, 25 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=799983