Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (8) TMI 206 - AT - Central ExciseRecovery of duty from the successor of the defaulter - Section 11 of the Central Excise Act read with Section 142 of the Customs Act, 1962 - Property of Vaishnavi was taken over by Gujarat Industrial Investment Corporation Ltd. (GIICL) and on an occasion transferred to M/s. Sachin Dyeing & Printing Mills Pvt. Ltd. on as is whereas basis as per the agreement of sale. The central excise duty initiated an action of recovery of central excise duty against M/s. Sachin Dyeing & Printing Mills Pvt. Ltd. as dupe of defaulter company from transferring company – Held that:- Appellant cannot be considered as successor as neither the business or trade of Vaishnavi is transferred to the appellant hence conditions of proviso to Section 11 of the Central Excise Act will not apply and are not sustainable. Though assets were sold, sale of assets by itself would not be transfer of business in whole or in part. There must be material on record to show that the business has been transferred to the Petitioner and consequent thereto the Petitioner has succeeded in said business - In the facts and circumstances of this case, M/s. Sachin Dyeing & Printing Mills Pvt. Ltd. are not successors in business or trade of Vaishnavi relying upon the decision in the case of Krishna Lifestyle Technologies Ltd.[ 2008 (2) TMI 2 - HIGH COURT, BOMBAY]. The facts of the present case is clearly distinguishable from the facts of the case Rana Girders Ltd. [2012 (11) TMI 478 - ALLAHABAD HIGH COURT], wherein there was a clear and unequivocal stipulation; in the deed of sale and in the agreement of sale of plant & machinery; that all statutory liabilities arising out of said property (land & building) shall be borne by purchaser and that the corporation shall not be held responsible for the same and have held that central excise dues and penalties are statutory liabilities and hence M/s. Rana Girders Ltd. are liable to pay the said statutory dies as they have agreed for discharge of all statutory liabilities. In the case in hand, agreement does not talk about any statutory liabilities that may be undertaken to be paid by the appellant M/s. Sachin Dyeing & Printing Mills Pvt. Ltd. The facts of the case in hand are totally different - Hon’ble High Court of Bombay in the case of Krishna Lifestyle Technologies Ltd. has specifically dealt with the succession of the business as is referred to in proviso to Section 11 of the Central Excise Act, 1944 – Decided in favor of appellant.
|