9911796707
TMI Blog2022 (12) TMI 1332X X X X Extracts X X X X X X X X Extracts X X X X ..... or recovery of central excise duty amounting to Rs.43,81,475.00 and penalty of Rs.49,81,475.00 plus interest which was due to be paid by respondent No.4 (M/s.Chemo Steels Private Limited). 3. The land admeasuring Acs.3.00 situated in Survey No.10 of Gaddapotharam Village, Jinnaram Mandal, Medak District (briefly 'the subject land' hereinafter) and the plant and machinery on the said land belonged to respondent No.4. In the course of manufacture of the excisable goods, the duty was required to be paid. For non-payment of such excise duty comprising of the duty, penalty and interest, impugned notice came to be issued to the petitioners as in the interregnum, petitioners had purchased the subject land from respondent No.4 through a registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M as well. The proviso to Section 11 is now added by way of amendment in the Act only w.e.f. 10-9-2004. Therefore, we are eschewing our discussion regarding this proviso as that is not applicable insofar as present case is concerned. Accordingly, we thus, hold that insofar as legal position is concerned, UPFC being a secured creditor had priority over the excise dues. We further hold that since the appellant had not purchased the entire unit as a business, as per the statutory framework, he was not liable for discharging the dues of the Excise Department." 5. Thus, Supreme Court held that as far as dues of central excise are concerned, those are neither related to the plant and machinery nor to the land and building. Thus, they did not ari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich arise out of the land and building or the plant and machinery. Statutory liabilities arising out of the land and building could be in the form of the property tax or other types of cess relating to property, etc. Likewise, statutory liability arising out of the plant and machinery could be the sales tax, etc. payable on the said machinery. As far as dues of the Central Excise are concerned, they were not related to the said plant and machinery or the land and building and thus did not arise out of those properties. Dues of the Excise Department became payable on the manufacturing of excisable items by the erstwhile owner, therefore, these statutory dues are in respect of those items produced and not the plant and machinery which was use ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
