TaxTMI 
TaxTMI 
1995 (2) TMI 454
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....ation. (iii) Hold that the Section 11AAAA of the RST Act does not override statutory powers of the petitioner-Corporation, under Sections 29/30 of the Act. (iv) Restrain the respondents Nos. 1 and 2 from auctioning the property, in question. (v) Set aside the sale or transfer, if any made by the respondent No. 2. (vi) Direct the respondents Nos. 1 and 2 to deposit realization, if any, made by them by auction of property of the respondent No. 3 with the petitioner-Corporation. (vii) Permit the petitioner-Corporation to take over the assets of the respondent No. 3 under Sections 29/30 of the S. F. C. Act, 1951. (viii) Strike down the provisions of Section 11AAAA of the Act as ultra vires and further realize their loan by sale, auction o....
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.... as follows: "Section 29(4) -- Where any action has been taken against an industrial concern under the provisions of Sub-section (1), all costs, charges and expenses which in the opinion of the Financial Corporation have been properly incurred by it as incidental thereto shall be recoverable from the industrial concern and the money which is received by it shall, in the absence of any contract to the contrary, be held by it in trust to be applied firstly, in payment of such costs, charges and expenses and secondly in discharge of the debt due to the Financial Corporation, and the residue of the money so received shall be paid to the person entitled thereto." This provision only provides that if the assets of an industry concern ....
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.... due to the Corporation from any borrower as a first charge on its assets and hence in absence of any inconsistency with provisions of Section 11AAAA of Rajasthan Sales Tax Act, the provisions of Section 46(B) will not come into play and they cannot override the effect of the provisions of Section 11AAAA of the Rajasthan Sales Tax Act. 4. Section 11AAAA reads as follows : "Section 11AAAA.-- Liability under this Act to be the first charge -- Notwithstanding anything to the contrary contained in any law for the time being in force, any amount of tax, penalty, interest and any other sum, if any, payable by a dealer or any other person under this Act, shall be the first charge on the property of the dealer, or such person." This se....
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....ntical provisions in the Central and the State Act and both of them start with non obstante clause and are inconsistent with each other. That conflict of provisions of two Acts is not present in this case and, therefore, that argument of the learned counsel has to be rejected for the reasons aforesaid. 7. A somewhat similar controversy came up for consideration before Hon'ble the Supreme Court in a recent decision rendered in the case of State Bank of Bikaner and Jaipur v. National Iron and Steel Rolling Corpn., 1995 (2) JT (SC) 14, wherein their Lordships of the Supreme Court have observed as under : "Para 10. In the present case, the section creates a first charge on the property, thus clearly giving priority to the statutory c....