# State Tax Officer, Unit-92 vs. Shri Keyur J. Shah, Liquidator of Gangotri Glazed Tiles Private Limited & Ors.

> NCLAT judgment dated 2026-05-11. Citation: TCN-2026-NCLAT-00193. The State Tax Officer (Appellant) challenged an NCLT Ahmedabad order directing it to release…

- **Court:** NCLAT
- **Order date:** 11 May 2026
- **Citation:** TCN-2026-NCLAT-00193
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/state-tax-officer-unit-92-vs-shri-keyur-j-shah-liquidator-of-gangotri-glazed-til-1c06d

## Summary

### Background

The State Tax Officer (Appellant) challenged an NCLT Ahmedabad order directing it to release a charge on the Corporate Debtor's property. The Appellant claimed a statutory first charge for tax dues (GVAT & CST Act) from 2010-13, asserting secured creditor status based on a lien created in 2019. Conversely, Rajkot Nagarik Sahakari Bank Ltd. (Financial Creditor/Respondent No.2) held a prior registered charge on the same property from 2012 and elected to realize its security interest outside liquidation under Section 52 of the IBC. The NCLT had sided with the Financial Creditor.

## Facts

The appeal challenges an NCLT Ahmedabad order dated 30.07.2024 in IA No. 742(AHM)2022 in Company Petition CP (IB) No. 473/2018.

The NCLT order allowed the application of the secured financial creditor (Rajkot Nagarik Sahakari Bank Limited) and directed the appellant (State Tax Officer) to release the charge created on the Corporate Debtor's land.

The Corporate Debtor is Gangotri Glazed Tiles Private Limited.

Tax recovery from the Corporate Debtor is due under the GVAT and CST Act for Assessment Years 2010-11, 2011-12, 2012-13, which is prior to the initiation of CIRP proceedings.

Notices for assessment were issued by the appellant under Section 9(2) of the Central Sales Tax Act, 1956 read with Section 48 of the GVAT Act, 2003.

…

## Issues and analysis

### Issue 1: Whether a subsequent statutory lien claimed by the State Tax Department in 2019 can override a …

**Ratio:** A prior perfected and registered security interest of a financial creditor takes

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**Reasoning:** The bank's charge was created in 2012 and duly registered with the Registrar of

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**Interpretation:** While statutory charges can create a first charge by operation of law, their

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**Application:** The NCLAT applied the 'first in time' principle, noting the bank's charge was

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## Parties

- **Judges:** N. Sesha…; Arun Ba…; +1 more
- **Appellants:** State Tax…
- **Respondents:** Gangotri Glazed…; Keyur J. Shah…; +1 more
- **Other parties:** SCC Mem…; Keyur J.…; +2 more
- **Advocates:** Ritu…; Bhargav D…; +6 more

## Timeline

- **2016-11-25 — Letter regarding tax…**: Appellant addressed a letter to Talati-cum-Mantri of Dhuva Village and Mamlatdar of…
- **2017-03-17 — Reminder letter for…**: State Tax Officer issued a reminder letter for charge/attachment on the corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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