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2016 (3) TMI 706 - CESTAT NEW DELHI

2016 (3) TMI 706 - CESTAT NEW DELHI - TMI - Rejection of refund claim - recovery of dues pending against predecessor of the premises from the subsequent purchaser of the premises in auction - rejection of claim on the ground that the Revenue has collected dues confirmed under section 11A of the Central Excise Act which were due to M/s. Regency Industries Ltd. and appellant is a subsequent owner of the said premises and has taken over the liability thereof - Held that:- When the appellant took ov .....

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in favour of assessee - Excise Appeal No. 673 of 2008- (SM) - Order No. FO/ 53489 /2015-Ex (SM) - Dated:- 6-11-2015 - SHRI ASHOK JINDAL, MEMBER (JUDICIAL) For the Petitioner : Shri Naveen Mullick, Advocate For the Respondent : Shri M R Sharma, AR ORDER PER ASHOK JINDAL : The appellant is in appeal against the order of rejection of their refund claim. 2. The facts of the case are that the appellant possess their factory premises in July, 2004 through auction made by M/s. RICO. The said business .....

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not able to pay the dues. Thereafter in open auction, the appellant before me has purchased the said premises. After taking the possession of said premises on persuasion of the Revenue department, the appellant paid a sum of ₹ 27,95,957/-. Later on the appellant filed a refund claim of said amount. The refund claim was rejected on the ground that the Revenue has collected dues confirmed under section 11A of the Central Excise Act which were due to M/s. Regency Industries Ltd. and appellant .....

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dues from the subsequent purchaser which came into effect on 10.9.04 whereas the appellant has taken his business premises in July, 2004. In support of this contention, she relied on the decision of Hon ble High Court of Gujarat in the case of Jagdish Enterprise Pvt. Ltd. vs. Union of India [2014(306) ELT 381 (Guj.)] and Rana Girders Ltd. vs. Union of India [2013 (295) ELT 12 (SC)]. 4. On the other hand, learned AR submits that while possessing the premises in auction, the appellant was in cont .....

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ich states that an appeal was filed by M/s. Regency Industries Ltd. against the order of adjudication before this Tribunal and this Tribunal has directed them to pay the amount of ₹ 2 lakhs out of ₹ 3 lakhs of penalty imposed on Shri B B Agrawal . But in this report by the Revenue, the departmental officer has not furnished the status of the appeal filed by M/s. Regency Industries Ltd. Moreover, while entertaining the said application of M/s. Regency Industries Ltd. whether this Trib .....

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id provision cannot be enforced on the appellant for dues pertaining to the predecessor which are in challange. Further I find that in the case of M/s. Rana Girders Ltd. (supra), the Hon ble Supreme Court has examined the issue whether the dues pending against predecessor of the premises can be recovered from the subsequent purchaser of the premises in auction or not, wherein the Honble Apex Court has observed as under: 23. We may notice that in the first instance it was mentioned not only in t .....

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As per the High Court, these statutory liabilities would include excise dues. We find that the High Court has missed the true intent and purport of this clause. The expressions in the Sale Deed as well as in the Agreement for purchase of plant and machinery talks of statutory liabilities arising out of the land or statutory liabilities arising out of the said properties (i.e. the machinery). Thus, it is only that statutory liability which arises out of the land and building or out of plant and .....

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