SARFAESI Act and RDB Act shall have overriding effect to provisions of H.P. Value Added Tax Act 2005 (HPVAT) – Bhagwan Singh Vs. State of Himachal Pradesh- Himachal Pradesh High Court
June 10, 2022
Hon’ble High Court held that SARFAESI Act as well as RDB Act are Central Legislations whereas HPVAT is a State Legislation. SARFAESI Act and RDB Act declare priority of secured creditors upon secured assets over all revenues, taxes, cesses and other rates payable to Central Government or State Government or local authorities. Provisions of Section 31-B of RDB Act are also the same. Section 26 of HPVAT creates first charge on property of dealer or such other person from whom any amount of tax or penalty including interest is recoverable.