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2012 (4) TMI 42 - HC - Central ExciseRecovery Rules - father of the Petitioner during his life time had by a deed of Gift gifted a property to her daughter (petitioner)- a notice of demand was addressed to the Petitioner’s father to pay Central Excise duty and penalty on the basis of a Certificate No.01/2011-12 dated 2 May 2011 else the procedure for attachment under the Recovery Rules 1995 would follow - the Petitioner was informed by notice that arrears of duty and penalty are recoverable from the Company; in the Municipal record the property stands in the name of the Petitioner’s father and as she was in occupation of the said property - petitioner contented that neither she nor her father was a defaulter of Excise duty under Section 142 (1) and the notice itself which very clearly states that the arrears of duty and penalty are recoverable from the company - Respondents have filed an affidavit that an agreement exists Mukherjee Brothers and Kapoor family who together controlled the said company, the shares of the Kapoor family were transferred to Mukherjee Brothers provided that the Mukherjee family would be responsible to discharge the Excise duty liabilities of the said company -Held that :- as per the Recovery Rules, 1995 “Defaulter” means any person from whom government dues are recoverable under the Act and in this case neither the Petitioner nor her father who was a Director of the company, were defaulters hence recovery rules will be applicable for the company - It is an undisputed position that duty and penalty are arrears of the company as per the agreement - allow the petition of assessee.
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