Whether the claim of a secured creditor has precedence over the right of the customs authorities to recover the customs duty – Industrial Development Bank of India Vs. Superintendent of Central Excise and Customs and Others – Supreme Court
Hon’ble Supreme Court, in this landmark judgment has clarified various issues:
(i) Interpretation of a non-obstante provision
(ii) Interpretation of the expressions ‘relevant date’, debt ‘due’ and debt ‘due and payable’.
(iii) Whether the Customs Act creates a first charge overriding the charge in favour of the secured creditor
(iv) Interpretation of Section 142A of the Customs Act, 1962
(v) The decision in Collector of Customs v. Dytron (India) Ltd. 1998 SCC OnLine Cal 674 does not lay down the correct law
(v) Examines decision in Imperial Chit Funds (P) Ltd. v. Income Tax Officer, Ernakulam and interpretation of Section 178 of the Income Tax Act.