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2014 (4) TMI 989 - GUJARAT HIGH COURTRecovery of demand from successor of Unit - Priority of dues - Whether in the facts and circumstances of the case, the Tribunal has committed substantial error of law in exonerating the respondent from liability of payment of Government dues in the capacity of successor of Shree Vaishnavi Dyeing & Printing Mills Pvt. Ltd. in terms of proviso to section 11 of the Central Excise Act, 1944 - Held that:- it is only that statutory liability which arises out of the land and building or out of plant and machinery which is to be discharged by the purchaser. Excise dues are not the statutory liabilities which arise out of the land and building or the plant and machinery. Statutory liabilities arising out of the land and building could be in the form of the property tax or other types of cess relating to property etc. Likewise, statutory liability arising out of the plant and machinery could be the sales tax etc. payable on the said machinery. As far as dues of the Central Excise are concerned, they were not related to the said plant and machinery or the land and building and thus did not arise out of those properties. Dues of the Excise Department became payable on the manufacturing of excisable items by the erstwhile owner, therefore, these statutory dues are in respect of those items produced and not the plant and machinery which was used for the purposes of manufacture - Following decision of Rana Girders Ltd. v. Union of India [2013 (8) TMI 540 - SUPREME COURT] - Decided against Revenue.
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