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2011 (2) TMI 1367 - HC - Central ExciseValidity of registration certificate - Vipulam Enterprises had stopped manufacturing activities and therefore, the registration was automatically invalid whereby, the question of surrendering, cancelling or revoking the registration did not arise - priority regarding Central Excise dues - Held that: - merely because the defaulter unit, though it had ceased to carry on business on the premises in question, had failed to apply for deregistration, the same should not, in any manner, come in the way of the petitioners in obtaining central excise registration in respect of the premises in question. A case where an existing unit is functioning from the same premises may stand on a different footing, but when the erstwhile unit has stopped functioning at the premises and the premises have not been transferred by the owner of the said unit but by a secured creditor in favour of a bonafide purchaser, things would stand on a different footing. A Central Excise registration in respect of a unit cannot continue for all times to come despite the fact that the unit has ceased to function since long, merely because the said unit has not surrendered its registration certificate or applied for deregistration or central excise authorities have not revoked the same - the stand adopted by the respondent authority that in respect of the same premises, since the earlier registration has not been cancelled, fresh registration cannot be granted to another person is not backed by any statutory provision and as such, cannot be accepted. The action of the respondents in denying registration to the petitioner in respect of the subject property on the ground that the registration of the erstwhile unit has not been cancelled is not a valid ground for refusing registration to the petitioner - petition allowed - decided in favor of petitioner.
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