TMI Blog2015 (8) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... he Official Liquidator issued an advertisement for sale of the assets of the Corporation after a winding up order was passed by the High Court, we are of the opinion that the past dues of the Central Excise Department cannot be recovered from the petitioner under Section 11 of the Act. Similar notice was issued by the Central Excise Department demanding duty of finished goods lying in stock, which was received by the petitioner from the Official Liquidator pursuant to their highest bid being accepted. 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 fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Corporation. Based on this advertisement, the petitioner gave his bid of ₹ 459.00 crores, which was found to be the highest and was accepted. The petitioner, accordingly, paid a sum of ₹ 459.00 crores to the Official Liquidator. The Central Excise Department issued the impugned notice dated 26.08.2010 contending that central excise dues amounting to ₹ 15.97 crores was due and payable by the erstwhile corporation and since the petitioner has purchased a running business of the Corporation, the liability of the Corporation towards the central excise dues has to be cleared by the petitioner and, accordingly, directed the petitioner to deposit the arrears within a month. The petitioner, being aggrieved by the issuance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. 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 provision is extracted hereunder: 11. Recovery of sums due to Government.-- In respect of duty and any other sums of any kind payable to the Central Government under any of the provisions of this Act or of the rules made thereunder, including the amount required to be paid to the credit of the Central Government under Section 11D, the officer empowered by the Central Board of Excise and Customs constituted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom 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 transfers or otherwise disposes of his business or trade in whole or in part, or effects any change in the ownership thereof, the excise dues could be recovered from the successor. In our view the said proviso will not be applicable in the present case. The proviso contemplates that where a person transfers or disposes of his business, which results in change of ownership, in that scenario, the successor would b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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