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2010 (12) TMI 349 - HC - Central ExciseSick company - Demand of duty as well as interest and penalty - M/s.Balaramaverma Textile Mills Ltd. was a company - Company became sick, and therefore, a reference was made to the BIFR under the Sick Industrial Companies (Special Provisions) Act, 198 - On the orders of the BIFR, the said company was amalgamated with the fourth respondent - National Textile Corporation Limited, which floated a tender to sell some of the properties originally belonged to M/s.Balaramaverma Textile Mills Limited - The petitioner participated in the tender and emerged with successful bidder - Accordingly, a sale deed was executed in favour of the petitioner - company by the fourth respondent - National Textile Corporation Limited - In pursuance of the same, the petitioner has become the absolute owner of the said properties - As per the Full Bench of this Court in B.Suresh Chand vs. State of Tamil Nadu , wherein, while dealing with a similar provision in Tamil Nadu General Sales Tax Act, the Full Bench has also taken the similar view falling in line with the view taken by the Division Bench in R.K.Steels' Company's case as well as the Judgment of the Hon'ble Supreme Court , held that the petitioner has not got the business or trade of either M/s.Balaramaverma Textile Mills Limited or the fourth respondent transferred and since the petitioner has got by transfer by sale only of the properties belonging to the said fourth respondent - National Textile Corporation Limited, the amount due towards Central Excise as well as towards interest under the Central Excise Act, 1944, from M/s.Balaramaverma Textile Mills Limited, cannot be recovered from the petitioner at all and thus, the petitioner is not liable to pay the same - Thus,the impugned order passed by the second respondent is set aside and the Writ Petition is allowed
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