Allowing the petition the court held that , the Bank as secured creditor had first charge to sell mortgaged property in view of priority under section 26E of the Act . The Tax Authority had second charge. Purchaser of property from private sale held by bank Paid full consideration . Tax Authority had no right to disturb title , interest and possession . Charge created by the Tax Authority was quashed . ( SCA No . 14194 of 2022 dt . 20-1 -2023 )
Nueva Mosaics LLP v. Department of Central Sales Tax .AIR 2023 GUJARAT 133
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002 .
S. 26E : Priority to secured creditors- Charge on mortgaged property – First charge in favour of Bank – Tax Authority had second charge – Purchase of property from private sale held by bank – Paid full consideration – Tax Authority had no right to disturb title , interest and possession – Charge created by the Tax Authority was quashed [ Value Added Tax Act 2003 , S. 9, 46 , 48 , Art . 226 ]