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2018 (2) TMI 276 - AT - Central ExciseRestoration of appeal - recovery of dues - appellant has taken the plea that since they are not successor to the business of M/s Raj & Yash Alloys therefore they are not liable for payment of dues of said concern - Do tax dues recoverable under the provisions of the Central Excise Act, have priority of claim over the claim of secured creditors under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2005? - Held that: - the Government dues do not have priority of claim over that of the secured creditors. However, if the Legislature makes those dues as having priority of claims. What is the effect of a prior attachment by revenue of the property excisable goods of tax defaulter under the provisions of the Central Excise Act before it is sold by a secured creditor under the provisions of the SARFAESI Act? - Held that: - the issue as framed there would not arise here as there was no previous attachment before the sale under the SARFAESI Act. Can a transfer be said to be a voluntary transfer by "the person" when the transfer takes place under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002? - Held that: - considering the language of the proviso to Section 14 2 of Customs Act and relying on the judgment of Macson Marbles Pvt. Ltd. v. Union of India, [2003 (11) TMI 71 - SUPREME COURT OF INDIA] the transfer can be said to be transfer which is voluntary. Does the mere purchase of the immovable/movable assets of a tax defaulter amount to transfer or disposal of business or trade in whole or in part or result in effecting change in ownership thereof in such business or trade by any other person, consequence of which such person is succeeded in such business or trade by any other person? - Held that: - considering the provisions of the SARFAESI Act, the provisions of the said Act will prevail over the provisions of the Customs Act and Central Excise Act. Once the Petitioner had purchased the assets in an auction held under the SARFAESI Act, they will hold the assets free from any encumbrances - demand is without jurisdiction. Demand set aside - appeal allowed.
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