2008 (4) TMI 325 - HC - Central Excise

Summary

Issues Involved:
Challenging seal application on factories due to license violation.

Analysis:
In the present case, two partnership firms challenged the action of the Assistant Commissioner, Central Excise and Customs in applying seals on their factories due to a license violation by the lessee of the factories. The petitioners had filed suits seeking permission to run the factories, which were initially granted by the Civil Court but later set aside by the High Court. The petitioners then submitted representations to the Department, which remained undecided, leading to the filing of the present petitions in 2007.

Undertaking and Payment Plan:
During the hearing, the petitioners offered to pay the dues of the lessee in installments and requested permission to run the factories. The High Court considered the interests of justice and directed the respondent to permit the petitioners to run the factories based on the undertaking given by the petitioners. The petitioners were required to deposit an initial sum and pay the remaining dues in monthly installments. The seals were to be removed upon the deposit of the first installment.

Clarifications and Liabilities:
The High Court clarified that the order allowing the petitioners to run their factories did not absolve the lessee from its liability towards the Excise Department. It was emphasized that efforts should continue to recover dues from the lessee. The order did not prejudice the petitioners' rights to recover dues from the lessee. The judgment disposed of both petitions, making the rule absolute in the specified terms.

This detailed analysis of the judgment highlights the issues involved, the payment plan proposed by the petitioners, the High Court's decision based on the interests of justice, and the clarifications regarding the liabilities of the lessee and the petitioners.