The claim of Applicant would not be considered to have first charge at par with secured creditors under the mandatory provisions of Section 82 of the Karnataka GST Act, 2017, Section 82 of CGST Act, 2017 and Section 20 of IGST Act, 2017 – Assistant Commissioner of Commercial Taxes Vs. Mr. Alok Kailash Saksena RP of Associate Décor Ltd. – NCLAT Chennai
Hon’ble NCLAT concurred the observations made in the order of NCLT Bengaluru Bench to the effect that the claim of Applicant, would not be considered to have first charge at par with secured creditors under the mandatory provisions of Section 82 of the Karnataka GST Act, 2017, Section 82 of the CGST Act, 2017 and Section 20 of the IGST Act, 2017 and that Section 20 of the IGST Act provides that certain provisions of CGST Act inter alia, those falling under Demands and recovery section of CGST Act shall, mutatis mutandis apply so far as may be, in relation to IGST, as they apply in relation to the Central Tax, as if they are enacted under the IGST Act etc. and that apart a specific exception to the provisions of the Code was prescribed in the aforesaid provisions, and expressly providing and overriding effect to the IBC, and held that are free from any legal errors.