Authority: High Court of Judicature at Bombay, Civil Appellate Jurisdiction

Order Date: 06 October 2026

Case Overview

  • Petition No.: Writ Petition No.2107 of 2026 filed by Axis Bank Limited (through Power of Attorney holder Vishal Yadav) against Deputy Commissioner of CGST & Central Excise (Respondent No.1) and an unnamed society (Respondent No.2).
  • Counsel for petitioner: Mr. Charles D'souza (with Ms. Juilee Modak) and Mr. Alok Mishra; counsel for respondents: Mr. J. B. Mishra and Mr. Abhishek R. Mishra.
  • Issue: Respondent No.1 issued a letter dated 10.02.2022 to Respondent No.2 directing the society not to issue a No‑Objection Certificate (NOC) for the subject flats (secured assets of Axis Bank) until further instructions.
  • Axis Bank relied on registration of its security interest with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) on 20.12.2020 and on the amendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (effective 24.01.2020, introducing Section 26E) to claim first‑priority over any statutory dues.
  • Respondent No.1 argued that the flats were provisionally attached under Section 83 of the CGST Act, 2017 on 15.02.2022 and the attachment was subsequently renewed.
  • The Court referred to the Full Bench judgment in Jalgaon Janta Sahakari Bank Limited Vs. Joint Commissioner of Sales Tax (2022 SCC OnLine Bom 1767), particularly paragraphs 85 and 150, which affirm that a secured creditor whose interest is registered with CERSAI enjoys priority over all other dues, including taxes, cesses, and rates payable to Central or State Governments.
  • The Court noted that Respondent No.1 had not shown any registration of its charge with CERSAI, whereas Axis Bank’s charge was duly registered.

Final Outcome

  • The Court held that Axis Bank’s dues as a secured creditor have priority over the dues of Respondent No.1, including any tax liabilities.
  • The impugned letter dated 10.02.2022 directing the society to withhold the NOC was declared illegal and ordered to be quashed.
  • A writ of Mandamus (and/or Certiorari) was issued directing Respondent No.1 to remove its lien/charges on the flats recorded with Respondent No.2 or any other authority.
  • All pending applications, if any, were disposed of.

Topics: Secured Creditor Priority, Tax Lien Quash