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2016 (12) TMI 1511 - AT - Central ExciseAttachment of property - factory premises was leased to M/s Siddhnath Exports, an 100% EOU, for the period from 27.03.2000 to 26.03.2006. Since M/s Siddhnath Exports defaulted in payment of confirmed excise duty and penalty amounting to ₹ 4,59,00,617/-, the recovery proceeding of the said amount was initiated from the Appellants - the recovery notice was issued to the Appellant on 11.10.2005 along with M/s Siddhnath Exports for recovery of the outstanding dues under Section 142(1)(c)(ii) of Customs Act, 1962. It is not in dispute that under registered lease deed executed on 27.03.1999, the Appellants had leased their factory, building and plant and machinery to M/s Siddhnath Exports for a period of six years commencing from 27th March 2000, and till 26th March 2006 and stipulated that in any case, the factory was not to be vacated till the export obligation was discharged. However, the said lessee M/s Siddhnath Exports has left their premises before completion of export obligations and expiry of lease period of six years. Held that: - I find that on the very same issue, the Tribunal has discussed in detail, the legality of the recovery of the outstanding dues from the lessor when the lessee, an 100% EOU, vacated the premises before fulfillment of the export obligations in Rajabali Ismail Rajbara case[2014 (3) TMI 483 - CESTAT AHMEDABAD (LB)] and by majority held that recovery cannot be made from the Lessor by attachment of the property - appeal allowed - decided in favor of appellant.
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