Secured creditor's dues take priority over Sales Tax dues; valid attachment by Tax Dept. required before claiming precedence.

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Full Text of the Document

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....Secured creditor has priority over Sales Tax Department for recovering dues from borrower/entity. Section 26E of SARFAESI Act and Section 38 of 2002 Act considered. Sales Tax Department must attach immovable property and issue proclamation as per law before enforcing priority over secured creditor. Mere communication to revenue authorities insufficient. Without valid attachment order and proclamation, Sales Tax Department cannot claim precedence over secured creditor's dues u/s 26E of SARFAESI Act. Secured creditor's petition allowed to proceed with enforcement of security interest over assets.....