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2014 (11) TMI 700 - HC - Central ExciseDenial of Excise registration - Initiation of proceedings for recovery of Central Excise dues from erstwhile owner - Held that:- As the Central Excise dues of the erstwhile owner of the year 1996 and 2000, respectively have been sought to be recovered from the petitioner Nos. 1 and 2 who have purchased the property of the erstwhile owner - M/s. Jem Ispat Ltd. in a public auction in the year 2000, i.e. after unreasonable period of 10 years, the impugned action of the respondents in initiating recovery proceedings against the petitioner Nos. 1 and 2 - subsequent purchasers, to recover Central Excise dues of the erstwhile owners - M/s. Jem Ispat Ltd., cannot be sustained and the same deserves to be quashed and set aside. Considering Section 6 of the Central Excise Act and Rule 9 of the Central Excise Rules, we are in complete agreement with the view taken by the Bombay High Court in the case of TATA Metalinks Ltd. (2008 (2) TMI 13 - BOMBAY HIGH COURT) and view taken by the Division Bench in the case of Surat Metallics Ltd. as well as in the case of M/s. Jahaan Steel Ltd. (2014 (11) TMI 427 - GUJARAT HIGH COURT) and we are also of the view/opinion that merely because erstwhile owner though it had ceased to carry on business on the premises in question, had failed to apply for de-registration and/or cancellation of the Registration Certificate and/or the department has not de-registered and/or cancelled the Registration Certificate issued in favour of the erstwhile owner, the same is no ground to deny Central Excise Registration to the subsequent purchaser-lessees in respect of premises in question as neither under Section 6 of the Act nor under Rule 9 of the Rules nor under any Notification, Central Excise Registration cannot be refused on the aforesaid ground. Under the circumstances, the action of the respondents-authority in refusing to grant Central Excise Registration in favour of the petitioner No. 3 on the aforesaid ground, cannot be sustained and the same deserves to be quashed and set aside - Decided in favour of assessee.
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