Harshad Shantilal Mehta vs Custodian & Ors.

Whether the priority under Section 11 of the Special Court Act applies only to amounts due prior to the date of notification or also to amounts due after notification --- Held: The priority applies to all taxes due, regardless of when they became due, provided they are finally assessed and ascertained liabilities. Whether the term 'taxes' in Section 11 includes penalties and interest --- Held: 'Taxes' does not include penalties and interest; they are not covered under the priority. Whether penalty and/or interest can be levied on notified parties after the date of notification --- Held: Notified persons remain liable for penalties and interest arising from their inability to pay taxes after notification, subject to the discretion of the Special Court.