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2021 (3) TMI 168 - AT - Central ExciseRecovery of Central Excise dues - whether the flats belonging to the appellant which she purchased under Registered Sale deeds out of monies received as gifts from her mother-in-law and father-in-law, can be proceeded against by the Excise department for recovery of Central Excise dues against two proprietory firms of her late husband? - HELD THAT:- After remand by the Hon’ble High Court, the appellant, before the Adjudicating Authority had placed Chartered Accountant’s certificate dated 10.06.2011 giving full details of source of income from which the appellant has purchased the said four flats. It was submitted by the appellant that the entire money which was paid by her for purchase of four flats was received by her as gift from her Father-in-law Shri Satyanarayan Agarwal and Mother-in-law Mrs. Panna Devi. To substantiate this fact, the appellant submitted income tax returns, capital accounts, bank statements and Income tax assessment orders of both the persons. On scrutiny of these documents, it is absolutely clear that the appellant have received gift from her father-in-law and mother-in-law. Accordingly, it is legally earned income by the appellant from which the entire payment of cost of flats was made. This fact has also not been disputed by the lower authorities. As admittedly, no sale or purchase deed was registered between Zenith Chemicals Pvt. Limited and Ms. Shivangi Agarwal with the builder. In this fact, it is established that no sale purchase of four flats against the payment made by Zenith Chemicals Pvt. Limited and Ms. Shivangi Agarwal was concluded. Therefore, even though some transaction was made towards purchase of four flats by Zenith Chemicals Pvt. Limited and Ms. Shivangi Agarwal with the builder but since the deal was cancelled there exists no sale purchase of four flats. Subsequently, in the fresh deal, the appellant has made payment from her own source which was received as gift from her mother-in-law and father-in-law and the sale deed for purchase of four flats with the builder was registered. Therefore, the appellant is sole owner of four flats purchased by making payment from her own source of income. In the deal between the appellant and the builder, the earlier inconclusive deal of Zenith Chemicals Pvt. Limited and Ms. Shivangi Agarwal with builder has no relevance. Even if there is remote connection with Zenith Chemicals Pvt. Limited and Ms. Shivangi Agarwal, since the deal was not fructified that any transaction made by them is not relevant as regards the present ownership of the appellant of these four flats for a simple reason that the payment by the appellant made to the builder is not from Zenith Chemicals Pvt. Limited and Ms. Shivangi Agarwal but entire payment was made by her from her own source of income. Since the four flats were purchased by the appellant from her own source of income, question of inheritance from her late husband Shri Krishna Agarwal does not arise. The Hon’ble High Court precisely directed the department to examine only two points whether the appellant has made payments for purchase of four flats by her own source of income and whether the property was possessed by the appellant as a result of inheritance from her late husband Shri Krishna Agarwal. From the detailed submissions along with the documentary evidence submitted by the appellant, it is clearly established that appellant have purchased four flats and made payment from her own source of income and it is also fact that appellant has not inherited the property from her late husband Shri Krishna Agarwal. In this undisputed fact, the lower authorities have travelled blindly ignoring the observations made by the Hon’ble Gujarat High Court and without any basis held that the appellant has not purchased four flats from her own source of income which completely in defiance of the order passed the Hon’ble High Court - taking into consideration the Hon’ble High Court’s order, undisputed facts and documentary evidence presented by the appellant, it is clear that the appellant is the sole owner of four flats purchased from her own source of income and not inherited from her late husband Shri Krishna Agarwal or even any member of the family. The impugned order is not sustainable - Appeal allowed - decided in favor of appellant.
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