TMI Blog2003 (6) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... notice to the writ petitioners. They filed Ext. P5 petition before the authority, who issued Ext. P4, contending that the authority did not have jurisdiction to continue the proceedings as the original notice, Ext. P3, had been issued to their father who was no more. There was no law enabling the officer to continue the proceedings with reference to the short-levy of the excise duty payable by the deceased, against his legal representatives. But this question was not decided by the authority, who issued Ext. P4. It was at that point of time, the writ petitioners approached this Court challenging Ext. P4 and seeking a declaration that the entire proceedings commencing or continuing from Ext. P3 as abated due to the death of their father. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r short-paid, to realise the balance payable within the period provided in the main section or as the case may be, in the proviso thereto. These proceedings are not confined to the manufacturer or the warehouse keeper or the purchaser as the case may be, as referred to in the said Rules. These proceedings can be initiated against whoever found chargeable with the duty. When the husband of the first writ petitioner and the father of the remaining writ petitioners on whom Ext. P3 had been served is no more, Ext. P4 notice can be issued to writ petitioners. It is further contended that when proceedings are initiated legally by issuing a notice under Section 11A notwithstanding the death of the person on whom the notice has been issued, the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication during the life time of the manufacturer, warehouse keeper or the purchaser, as the case may be, in which case, the legal heirs can be proceeded against at least to the extent of the property that they had inherited from their predecessor-in-interest. 4.It is in the aforesaid perspective, we have to examine whether the power of Central Excise Officer under Section 11A can be exercised after the death of the person concerned who is styled as manufacturer, warehouse keeper or the purchaser as the case may be. 5.The decision rendered in the Commissioner of Income Tax, Bombay v. Ellis C. Reid (AIR 1931 Bombay 333) was in respect of the Income Tax Act, 1922. The proceedings were initiated under Section 23(4) and consequently followed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e person, taking into account the broad concept as well. This is case of short-levy of duty. The proceedings can be continued against the manufacturer if he had moved the products paying the duty less than what is liable under the Act. Obviously he has to pay the balance duty as well, if there was a short-levy. This demand has to be met, if it remains unpaid by the legal representatives even after the death of their predecessor-in-interest. This is a case where the short-levy has been noticed during the life of their predecessor. 9.Suppose there had been a case of excess levy from the predecessor-in-interest. If the argument advanced by the learned Counsel for the writ petitioners is accepted, it will lead to a situation that the legal re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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