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2015 (2) TMI 1056 - AT - Central ExciseSuccessor's liability - Recovery of dues from successor company - Held that:- The undisputed facts are that the factory premises alongwith all the plant and machineries were taken over by the respondent from its previous owner M/s. Unistar Polymers (P) Ltd. on 31.07.2003 and the Central Excise Registration Certificate was issued to the respondent on 03.12.2003. There was a confirmed duty demand and penalty totalling to ₹ 9,73,676/- pending recovery against M/s. Unistar Polymers (P) Ltd. However, at the time of purchase of business of M/s.Unistar with plant and machinery by the respondent, there was no Provision in Section 11 of the Central Excise Act for recovery of dues pending against a manufacturer- defaulter from the person who purchased his business alongwith his factory. Such a provision was made by inserting proviso to section 11 with effect from 10.09.2004 and by this proviso to section 11, the arrears of Revenue pending recovery from the predecessor could be recovered even after change of ownership of the factory by attaching the machinery, vessels, utensils, implements and articles in possession of the successor of business. Since, there is nothing in this proviso to indicate that this amendment has retrospective effect, the same cannot be applied retrospectively and therefore the Department invoking Proviso to Section 11 could not recover from the respondent the arrears of Revenue of M/s. Unistar Polymers (P) Ltd. We find that same view has been taken by the Tribunal in the case of Eklinggji Finance Pvt. Ltd. (2012 (1) TMI 120 - CESTAT NEW DELHI) and also by Hon ble Karnataka High Court in the case of CCE, Bamgalore-I vs. Press Fab Precision Components Pvt. Ltd. reported in [2006 (8) TMI 206 - HIGH COURT OF KARNATAKA AT BANGALORE]. In view of this, we do not find any infirmity in the impugned order. - Decided against Revenue.
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