M/S. Orissa State Financial Corporation vs Commnr. of Commercial Taxes & Ors.

M/s Orissa State Financial Corporation .. Appellant(s)

Versus

Commnr.of Commericial Taxes & Ors. .. Respondent(s)

O R D E R

Despite valiant attempt on the part of learned

counsel for the appellant to convince us that in view of

some observations in Dena Bank Vs. Bhikhabhai Prabhudas

Parekh & Co. & Ors., 2000(5) SCC 694, the issue raised in

the present appeal requires consideration, in our judgment

the issue is no more res integra. In State Bank of

Bikaner & Jaipur vs. National Iron & Steel Rolling Corp. &

Ors., (1995) 2 SCC 19, explaining the scope of Section 11-

AAAA of the Rajasthan Sales Tax Act, 1954 (for short, "the

Act") which is pari materia to Section 13-B of the Orissa

Sales Tax Act, 1947, a three-Judge Bench of this Court has

held that the statutory charge created under Section 11-

AAAA of the said Act, the sales tax dues shall have

precedence over the mortgage created in favour of the Bank. To the same effect is another decision of this Court in

State of M.P. & Anr. vs. State Bank of Indore & Ors.,

(2002) 10 SCC 441, wherein it was held that a charge created by Section 33C of the M.P. General Sales-Tax Act,

..2/-

: 2 :

1958 in favour of the State in respect of sales-tax dues

shall prevail over the charge created by the dealer in

favour of the Bank in respect of the loan.

In view of the said pronouncements, we do not find

any substance in this appeal. The appeal, therefore,

stands dismissed, leaving the parties to bear their own

costs.

....................J. [ D.K. JAIN ]

....................J. [ T.S. THAKUR ]

NEW DELHI, DECEMBER 03, 2009.