TMI Blog2001 (4) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... ee payable to the customs and excise authorities and for a direction upon respondent Nos. 3 and 4 herein not to interfere with the removal of the machinery from the premises of the loanee and transport the same to the destination. 2. The establishment of Koratla Textiles Pvt. Ltd., Lingojiguda village, Choutuppal Mandal, Nalgonda district was a loanee of the Andhra Pradesh State Financial Corporation (hereinafter referred to as the loanee ). Machinery, furniture, fixtures and stores of the said company were put in public auction in terms of the provisions of section 29 of the State Financial Corporations Act, 1951 (for short the Act ). The petitioner being the highest bidder, the said machinery etc. were transferred in its name. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the customs authorities can enforce the bond only in terms of the provisions of section 63 of the Customs Act so long as the lien subsists. Our attention in this connection has been drawn to the provisions of section 60 of the Customs Act as also the proviso appended to section 61 thereof. It was pointed out that the liability of the loanee to the customs authorities is not disputed and the said liability having been accepted by the financial corporation, there is absolutely no reason why respondent Nos. 3 and 4 would prevent the petitioner from lifting the machinery. 7. Sri Y.N. Lohita, learned standing counsel appearing on behalf of the State Financial Corporation supported the said contention and submitted that the Corporation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch goods; ( b )to pay on or before a date specified in a notice of demand, ( i )all duties, and interest, if any, payable under sub-section (2) of section 61; ( ii )rent and charges claimable on account of such goods under this Act, together with interest on the same from the date so specified at the rate of six per cent per annum or such other rate as is for the time being fixed by the board; and ( c )to discharge all penalties incurred for violation of the provisions of this Act and the rules and regulations in respect of such goods. (2) For the purposes of sub-section (1), the Assistant Collector of Customs may permit an importer to enter into a general bond in such amount as the Assistant Collector of Customs may approve in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sufficient cause being shown, be extended by the Collector of Customs for a period not exceeding six months and by the board for such further period as it may deem fit: Provided further that when the licence for any private warehouse is cancelled, the owner of any goods warehoused therein shall, within seven days from the date on which notice of such cancellation is given or within such extended period as the proper officer may allow, remove the goods from such warehouse to another warehouse or clear them for home consumption or exportation. 62. Control over warehoused goods. (1) All warehoused goods shall be subject to the control of the proper officer; (2) No person shall enter a warehouse or remove any goods therefrom without the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have the same rights and powers with respect to goods manufactured or produced wholly or partly from goods forming part of the security held by it as it had with respect to the original goods. (4) Where any action has been taken against an industrial concern under provisions of sub-section (1), all costs, charges and expenses which in the opinion of the financial corporation have been properly incurred by it as incidental thereto shall be recoverable from the industrial concern and the money which is received by it shall in the absence of any contract to the contrary, be held by it in trust to be applied firstly, in payment of such costs, charges and expenses and, secondly, in discharge of the debt due to the financial corporation, and, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice condition No. 7 mentioned in the sale confirmation letter dated March 21, 2001, addressed by the Andhra Pradesh State Financial Corporation to the petitioner which read thus : "However, the purchaser need not take responsibility for settlement of dues of Central Excise Department as the Corporation will sort out the issue with the said department depending upon the decision of the High Court in the writ petition filed by the Central Excise Department which is still pending." 14. The said conditions were modified by letter dated March 22, 2001. 15. The submission of Mr. Narasimha Reddy to the effect that the defaulting party in collusion with the State Financial Corporation may get the property sold with a view to defraud C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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