IN THE  SUPREME COURT OF INDIA                 CIVIL  APPELLATE  JURISDICTION                                     CIVIL APPEAL NO. 1434 OF 2003   

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.