9911796707
TMI Blog2011 (6) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... of machinery, motor parts, cranes, dozers, old power plants, sick industrial units etc. They are not manufacturers of any excisable goods and they do not hold any Central Excise registration, either under the provisions of Central Excise Act, 1944 or the Central Excise Rules. 3. The facts of the case, in brief, are that they purchased the assets of M/s Gujarat Narmada Auto Ltd.(GNAL) in liquidation from the auction in sale from the Official Liquidator appointed by Gujarat High Court. After the full payment of the sale, the possession and ownership of the said assets was handed over to the appellants on 29.5.03. 4. Their jurisdictional Range Superintendent, Central Excise, vide letter dt.5.9.03 directed them to obtain Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee that though the personal hearing in the said Show Cause Notice has taken place, no final order confirming any demand of duty against the assessee stand filed by the proper officer. As such, encashment of bank guarantee, without first determining the assessee s liability to pay duty on the clearance of dis-mantled scrap, was against the basic principles of justice. It was also contended before Commissioner(Appeals) that another Show Cause Notice dt.15.5.08 stand issued by the Commissioner demanding Central Excise duty of Rs.1.23 Crores (Rupees One Crore, Twenty Three Lakhs) in respect of the goods and raw material cleared by the assessee. Both the Show Cause Notices have not resulted in any final adjudication and encashment of bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tude in encashing bank guarantee, without first deciding the Show Cause Notices issued to the respondent. Instead of adjudging their duty liability by finally deciding the Show Cause Notices issued to them, a lot of energy and time is being wasted by Revenue on a frivolous issue of encashment of bank guarantee. Admittedly Revenue has shown undue haste in encashing bank guarantee, without first deciding the assessee s duty liability. The said bank guarantee was ordered to be given Hon'ble High Court of Gujarat to safeguard the Revenue s interest, which may arise in future and allow the assessee to clear their final product in the meanwhile. How said bank guarantee can be encashed by Revenue without adjudging duty liability against the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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