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: ACCOUNTING STANDARD :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: list of goods taxed at 4% :: TDS :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: VAT Audit :: empanelment
 
 
News Headlines »
 Securities excluded from GST ambit in revised Bill
 GST dilemma: Hope fades for new tax regime
 5nance.com launches tax investment platform
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice

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