TMI Blog2003 (11) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... ult to conceive that the appellant had any opportunity to participate in the adjudication proceedings and contend against the levy of the penalty. Therefore, in the facts and circumstances of this case, we think it appropriate to direct that the said amount, if already paid, shall be refunded within a period of three months. In other respects, the order made by the High Court shall remain undisturbed. The appeal is disposed of accordingly. - 4463 of 1997 - - - Dated:- 11-11-2003 - S. Rajendra Babu and G.P. Mathur, JJ. [Order]. - An Industrial unit run by M/s. Diamond Marbles Pvt. Ltd. - respondent No. 4 was brought to sale in terms of Section 29 of the State Financial Corporation Act, 1951 (for short, the State Act) by Rajasthan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of the said Rule, it is open to the Department to proceed against the plants and machinery of the owner from whom it was transferred and made it clear that it is open to the appellant to agitate against the erstwhile owner respondent No. 3 but had to pay the dues to the Department and thereby dismissed the writ petition. Hence this appeal by special leave. 3.In this appeal, Ms. Radha Rangaswamy, learned Counsel for the appellant very strenuously contended that in view of Section 46B of the State Act it would prevail over the Central Excise Act and relied upon the decision of this Court in Sitani Textiles Fabrics (P) Ltd. v. Asstt. C. of Cus. C.E., Hyderabad - 1999 (106) E.L.T. 296. She submitted that as the State Act is a sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the Central Excise Act and Rule 230(2) of the Central Excise Rules. The said Rule clearly indicates that it is a mode of recovery of the excise dues from the assets owned by a predecessor and on his liabilities being assessed could be recovered even from the successor. 6.The argument advanced by the appellant that sale having taken place under the State Act free of encumbrances and the transferor's rights or liabilities cannot be that of transferee does not hold good. Section 29(2) of the State Act makes it clear that the property pledged, mortgaged, hypothecated or assigned to the Financial Corporation can be brought to sale and such a sale if resulted in transfer of property shall vest in the successor all rights in the property tra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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