2022 (4) TMI 4

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....there is local sale of iron and ore by the petitioner company. The petitioner company maintained the books of accounts and the same is audited under Section 44AB of the Income Tax Act. While filing the returns, the petitioner has claimed all the exemptions and deductions as provided under the Karnataka Value Added Tax Rules. The returns filed by the appellant company were accepted and deemed assessment orders were concluded under Section 38 of the KVAT Act. The petitioner's case was taken up for audit. In pursuance of the assignment order, the respondent issued the notice directing the petitioner to produce the books of accounts. The petitioner appeared before the respondent and produced VAT-100, Form- 240, Balance Sheet, Profit and Loss Ac....

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....fore the Court. It is also a contention of the petitioner that a memo was filed stating that there was a first charge in favour of the bank and notice has to be issued to the bank as the bank is necessary party before attaching any movable and immovable properties of the petitioner and the said memo was dismissed vide order dated 31.08.2018 and hence, the present revision petition is filed before the Court. 3. The learned counsel appearing for the petitioner would submit that under Section 26E of the SARFAESI Act priority to the secured creditors and the proviso also says that notwithstanding anything contained in any other law for the time being in force, after the registration of security interest, the debts due to any secured creditor....

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....ned in any other law for the time being in force, after the registration of security interest, the debts due to any secured creditor shall be paid in priority over all other debts and all revenues, taxes, cesses and other rates payable to the Central Government or State Government or local authority. This proviso is not brought to the notice of the Trial Court while arguing the matter. In the case on hand, there is no dispute with regard to the fact that already there was a charge in favour of the bank. The Trial Court also in the order mentioned that no doubt, the respondent has said that charge over the movable and immovable properties of the respondent has been created in favour of the bank but comes to the conclusion that when this Cour....