Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2017 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 640 - HC - Central ExciseCharge on properties - section 11 of the Act - order of attachment - Central Excise authorities had various claims against one of its assessees. Such assessee is a borrower of a Bank. The Bank had proceeded under the provisions of the Act of 2002 against its security interest. It had put up the assets belonging to the defaulter/borrower for sale. The first petitioner had participated in such sale. The sale was on as is where is and whatever there is basis as appearing in the sale notice. The first petitioner being successful in the auction sale had purchased such properties from the Bank. Whether as purchaser of the assets of the assessee can the first petitioner be said to be a person liable to pay the amount defaulted by the assessee? - Held that: - section 11E of the Act of 1944 will apply and will create a first charge on the property of the assessee or the purchaser of such property as the case may be in the event, the same is not contrary to the provisions of the Act of 2002. In the present case, the Bank claims first charge over the properties put up for sale. Moreover, as noted about, the entire business was not put up for sale. Only the assets of the assessee were put up for sale. Central Excise authorities have acted without jurisdiction in proceeding against the petitioners in respect of the defaults committed by the assessee. All proceedings including the orders of attachment initiated by the Central Excise authorities on the basis of default of its assessee against the petitioners are set aside. Petition allowed - decided in favor of appellant.
|