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2015 (8) TMI 293 - HC - Central ExciseRecovery of dues from the successor - Liability of Purchaser of property for which dues were pending - Held that:- There was no embargo upon the erstwhile Company, M/s. Ram Shiv Industries Ltd., in selling its property to the petitioner. When the property was sold off on 11-2-2008 there were no Central Excise dues against the said Company. The dues came into existence after the Order-in-Original was passed by the excise authorities on 18-9-2008. Consequently, Section 142 of the Customs Act is not applicable in the instant case - running business of M/s. Ram Shiv Industries Ltd. was not transferred to the petitioner. Only land, building and old scraps of machinery was sold. The petitioner has not stepped into the shoes of the erstwhile Company nor has taken the liability of the erstwhile Company. We find support of this reasoning from a decision of the Supreme Court in the case of M/s. Rana Girders Ltd. v. Union of India - [2013 (8) TMI 540 - SUPREME COURT] wherein the Supreme Court held that where the buyer purchases the entire business only then he was liable for Central Excise Duty and not otherwise. - impugned notice demanding the Central Excise dues of M/s. Ram Shiv Industries Ltd. from the petitioner is wholly illegal and cannot be sustained and is quashed - Decided in favor of assessee.
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