M/S. ORISSA STATE FINANCIAL CORPORATION vs COMMNR. OF COMMERCIAL TAXES .

The Supreme Court held that under Section 11-AAAA of the Rajasthan Sales Tax Act, 1954, sales tax dues have precedence over any mortgage created in favor of a bank. This principle was affirmed by referencing previous judgments, including State Bank of Bikaner & Jaipur vs. National Iron & Steel Rolling Corp. and State of M.P. vs. State Bank of Indore, establishing that statutory charges for sales tax take priority over bank loans. Consequently, the appeal was dismissed, with no costs awarded to either party.