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TMI Blog2015 (8) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... sick industrial company in 1992 and, subsequently, recommended its winding up. Upon receipt of the recommendation from the BIFR, the High Court passed an order dated 08.12.1999 for winding up the Corporation and appointed the Official Liquidator attached to the High Court to act as the Liquidator of the said Corporation. The Official Liquidator issued an advertisement in August, 2005 for sale of the cement plant and other assets of the Corporation. Based on this advertisement, the petitioner gave his bid of Rs. 459.00 crores, which was found to be the highest and was accepted. The petitioner, accordingly, paid a sum of Rs. 459.00 crores to the Official Liquidator. The Central Excise Department issued the impugned notice dated 26.08.2010 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s decided by the Claim Committee on 29.12.2006 against which the Central Excise Department has filed a Company Appeal under Rule 164 of the Company (Court) Rules, 1959 before the Company Judge, which is pending consideration. It was also contended that the claim of the Central Excise Department towards excise dues would be considered in accordance with the provisions of Sections 529, 529A and 530 of the Companies Act. We have heard Sri Navin Sinha, the learned Senior Counsel along with Sri Raghav Nayar for the petitioner, Sri R.C.Shukla for the Central Excise Department and Sri Ashok Mehta along with Sri Ashish Agrawal for the Official Liquidator. The Central Excise Department has relied upon Section 11 of the Act. For facility, the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the ownership thereof, in consequence of which he is succeeded in such business or trade by any other person, all excisable goods, materials, preparations, plants, machineries, vessels, utensils, implements and articles in the custody or possession of the person so succeeding may also be attached and sold by such officer empowered by the Central Board of Excise and Customs, after obtaining written approval from the Commissioner of Central Excise, for the purposes of recovering such duty or other sums recoverable or due from such predecessor at the time of such transfer or otherwise disposal or change." The proviso to the aforesaid section indicates that where a person from whom duty or a sum of any kind is recoverable or due, and trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Commissioner, Central Excise Department after considering the matter passed an order dated 28.07.2011 holding that the petitioner was not the manufacturer of goods and, therefore, was not liable to pay central excise duty quite apart from the fact that the petitioner had purchased the property in auction, which was free from all encumbrances and, consequently, dropped the proceedings. In the light of the aforesaid, since the petitioner had only purchased the assets of the Corporation in pursuance of the winding up order passed by the High Court and had not taken over a running business of the Corporation, the liability of past central excise dues payable by the Corporation cannot be fastened nor recovered from the petitioner. Conseque ..... X X X X Extracts X X X X X X X X Extracts X X X X
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