Insertion of new section 11E
63. After section 11DDA of the Central Excise Act, the following section shall be inserted, namely:-
Liability under Act to be first charge.
“11E. Notwithstanding anything to the contrary contained in any Central Act or State Act, any amount of duty, penalty, interest, or any other sum payable by an assessee or any other person under this Act or the rules made thereunder shall, save as otherwise provided in section 529A of the Companies Act, 1956, (1 of 1956.) the Recovery of Debts Due to Banks and the Financial Institutions Act, 1993 (51 of 1993.) and the Securitisation and Reconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002, (54 of 2002.) be the first charge on the property of the assessee or the person, as the case may be.”.
Notes on Clauses:
Clause 63 of the Bill seeks to insert a new section 11E in the Central Excise Act so as to create a first charge on the property of the defaulter for recovery of any amount due under this Act except as provided under section 529A of the Companies Act, the Recovery of Debt due to Bank and the Financial Institution Act, 1993 and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
