Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: due date for vat payment :: empanelment :: list of goods taxed at 4% :: VAT RATES :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: form 3cd :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India
« News Headlines »
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016

SC to decide priority over division of debtor's assets
November, 26th 2007
The Supreme Court will decide whether recovery of government dues, including income tax and excise, should get priority over liabilities of banks and other creditors while dividing the assets of a sick company.

Tax authorities have moved the apex court challenging the Punjab and Haryana High Court which held that excise dues cannot get priority over liabilities of secured or unsecured creditors, banks and financial institutions.

A bench headed by Justice S H Kapadia issued notice to defunct company Midland Steels & Alloys Pvt Ltd, on whose petition the High court had passed the judgement.

The Central Excise Division, Ludhiana, in its appeal submitted the High Court had failed to appreciate that as per the provisions of Customs Act 1962 and Central Excise Act 1944, its dues had precedence over other creditors - secured or unsecured.

The High Court's observation that "crown debts" (debt owed to the state) can only get priority when it was prior in time to that of unsecured credit was wrong in law, Additional Solicitor General Vikas Singh said.

According to the petition, financial institution becomes the owner of a sick company by operation of law and was liable to pay the company's dues to the government by way of taxes and excise duty.

The department also referred to the apex court's order in a case involving Dena Bank against Bhikhabhai Prabuda Parekh & Company, where it had held that arrears of tax dues to the state can claim priority over private debt.

Midland, which was registered with the Central Excise department for the manufacture of non-alloy steel ingots, had claimed abatement under the Central Excise Act, 1944 after its closure in June 2001. While its claims were rejected by the department, a tax tribunal had allowed abatement.

The excise department had initiated recovery proceedings and an officer appointed to sell its movable and immovable property had issued attachment certificate to Andhra Bank for attachment of the property for recovery of government dues.

Midland had approached the High Court seeking a direction to Andhra Bank to dispose of its assets and pay its excise dues of Rs 4.12 lakh in priority over other dues.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions