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2019 (2) TMI 1559 - HC - Central ExciseRecovery of excise dues - attempt and coercive action on the part of the respondents in seeking recovery of the excise dues of one M/s. Shri Ganesh Mahadev Dyeing Mills, a partnership firm, erstwhile owner of the property - case of petitioner is that the petitioner was perceived to be successor of the erstwhile owner of the property, which as per the petitioner was wholly incorrect, illconceived and deserve to be quashed and set aside. Held that:- Unfortunately, in affidavitinreply, it is no where pleaded that there was any fraudulent transfer of business for avoiding the payment of dues by the erstwhile owner of the property. The unfortunate invoking of the general and common clause in the Sale Deed qua liabilities of Government dues on the property deserve to be appreciated in a proper perspective. The excise dues were not liable to be recovered from the property in question in the hands of the petitioner as still the property's change hands there was no attachment or restrictions or charge placed by the department and the property was in fact free from such kind of charge from excise department and therefore, it was not open to the department to invoke provision of Section11 to rope in the subsequent purchaser of the property by misconceiving it to be a purchase of business so as to attribute the petitioner successor only for the purpose of invoking Section11, which unfortunately has not been established by the petitioner in the present petition. The Court is of the view that the petitioner can not be held liable to pay any dues of the erstwhile owner of the property in absence of any specific covenant qua the same - petition allowed.
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