TaxTMI 
TaxTMI 
2011 (12) TMI 203
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....ner had purchased through public auction held by respondent No.3 Dena Bank seeking to recover its due through the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2005 ('SARFAESI Act' for short). Shortly stated, facts are as follows:- 2. Respondent No.3 Dena Bank had given public advertisement in leading newspapers inviting offers from interested parties for purchase of immovable property of one M/s.Shree Sanand Textile Industries Pvt Ltd., which was in the nature of land admeasuring 6 acres and 4 gunthas with constructed building thereupon. The land was situated in village Sanand and was categorized as survey No. 109/3 paike. 3. The petitioner being interested....
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....he Central Excise Department did not relinquish its charge, the petitioner filed the present petition and prayed for deletion of the said entry from the revenue record of the land in question. 5. On behalf of the petitioner, learned counsel Shri Rao submitted that the dues of the Excise Department cannot have priority over the dues of the secured creditor. The land was mortgaged by the Bank and thereafter sold for realization of its dues in exercise of powers under the SARFAESI Act. He submitted that the issue is squarely covered by series of decisions of this Court as well as the Apex Court. Counsel relied on a Division Bench decision of this Court in the case of Tax Recovery Officer v. Industrial Finance Corporation of India, date....
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....s in exercise of powers under the SARFAESI Act. It was in this background, Division Bench held that the unsecured Crown debt has no priority over secured debt of a secured creditor. 7.2 In the decision of Division Bench of this Court in the case of Industrial Finance Corporation of India (supra), also one of the cases pertained to the priority of dues of the Excise and Customs Department over the secured debt of the financial institution and similar view was expressed by the Division Bench in the said decision. 8. Under the circumstances, we have no hesitation in holding that the charge of the Central Excise Department cannot survive and must be ordered to be deleted. We may note that proviso to section 11 permits the Depart....