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2011 (8) TMI 35 - AT - Central ExcisePenalty under Rule 173Q (1) - Appellant purchased/ took over the factory premises of M/s. Akshay Daman Solvents Pvt. Limited and applied for Central Excise Registration.Further, having given undertaking to the department at the time of registration appellant cannot go back and say that undertaking given by them is not binding on them - It was communicated to the appellants that one case is pending in the name of M/s. Akshay Daman Solvents Pvt. Limited and demand of Central Excise duty of Rs. 4,36,887/- with interest and penalty of equal amount and personal penalty of Rs. One lakh is pending against them - The Hon ble Supreme Court in Macson Marbles has held that on transfer of industrial unit by the State Financial Institution, liability to pay excise dues of the previous owner gets transferred to the purchaser. Further, having given undertaking to the department at the time of registration appellant cannot go back and say that undertaking given by them is not binding on them - Thus, in terms of Section 11 and undertaking given by the appellant and in view of the decision of the Hon ble Supreme Court, appellant are liable for the dues against M/s. Prince Paper Mills - As regards interest, the issue is covered by the decision of the Tribunal in Elastolan Engineers and accordingly there is a need to re-calculate the interest amount as per law and as per the decision of the Tribunal in the case cited above - As regards penalty, Hon ble Supreme Court in Para 8 of the judgment in Macson observed that penalty cannot be recovered from the successor since successor did not get an opportunity to contest the same - Decided against the assessee.
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