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2023 (3) TMI 1271 - HC - Central ExciseRecovery of central excise duty or penalty - no personal guarantee for the dues of the company to the respondents - Shell company - existence of any enabling law as may allow the Central Excise Authority to recover any part of the demand from the personal assets of the petitioner - HELD THAT:- There is no denying that there is complete lack of any enabling law that may allow the Central Excise Authority to recover any part of demand raised against the Company from the personal assets of the petitioner. Merely because such demand may have remained outstanding against the Company would not entitle the revenue to proceed to recover the same from the personal assets of Director of the Company. The counter affidavit also does not indicate any fact as may allow this Court to infer that the Company-an independent juridical entity, against which dues have been determined, was a shell operated by the present petitioner for his own benefit. Unless the revenue authority had looked through the constitution and functioning of the Company in accordance with law, it may never have been enabled to claim the dues determined against the Company, from the personal assets of the present petitioner. The order dated 17.12.2021 passed by the Assistant Commissioner Central Goods and Service Tax, Division-I, Muzaffar Nagar seeking to recover the dues of the Company from the petitioner is clearly non-speaking. Despite specific objection raised by the petitioner and despite taking notice of the same, no reason has been noted in the impugned order to recover the dues of the Company from the personal assets of the petitioner. Petition allowed.
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