2026-VIL-1170-BOM
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SGST High Court Cases

GST - Priority of dues of secured creditor over GST dues - Petitioner, a secured creditor, challenged the letter issued by the Respondent-Dept directing the society not to issue No Objection Certificate in respect of flats which were secured assets - Respondent relied on provisional attachment of the property under Section 83 of the CGST Act, 2017 - Whether the dues of the secured creditor have priority over the dues claimed by the GST authorities when the charge of the authorities is not registered with the Central Registry - HELD - With the amendment of the Securitisation Act with effect from 24.01.2020 and the introduction of Section 26E, upon the security interest of the secured creditor being registered with the Central Registry, its dues have first priority. The Full Bench in the case of Jalgaon Janta Sahakari Bank Limited has held that the dues of the secured creditor have priority over all other dues, including all revenues, taxes, cesses and other rates payable to the Central Government or State Government or local authority. It was also held that attachment orders issued after 24.01.2020, if not filed with the Central Registry, require the department to wait till the secured creditor mops up its secured dues by sale of the immovable property - The security interest of the Petitioner is registered with the Central Registry, and the Respondent has not been able to show that its charge is registered. There is no legal basis for the Respondent to have issued the letter directing that No Objection Certificate could not be issued for the secured assets - The impugned letter is quashed and the writ petition is allowed
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