ORDER

The judgment and order under challenge was passed by a Division Bench of the High Court of Madhya Pradesh at Indore. It dismissed the First Appeal filed by the present appellant, the State of Madhya Pradesh.

2. The second respondent had obtained from the first respondent-Bank a term loan of Rupees forty thousand on 5th September, 1974. In this behalf, the second respondent had executed a promissory note and had pledged to the Bank certain machinery. A second loan was taken on 23rd January, 1979 and a third loan on 25th January, 1979.

3. In the meantime, with effect from 19th January, 1976, Section 33-C was inserted into the M.P. General Sales Tax Act, 1958. It read thus:

"Tax to be first charge - Notwithstanding anything to the contrary contained in any law for the time being in force, any amount of tax and/or penalty, if any, payable by a dealer or other person under this Act shall be a first charge on the property of the dealer of such person."

4. In respect of the second respondent s sales tax dues, the State claimed a first charge under Section 33-C upon the machinery in priority to the charge held by the Bank. The trial court and the High Court did not accept the State s