Demerger/amalgamation of unit - Liability of predecessor / ...

Central Excise

April 2, 2022

Demerger/amalgamation of unit - Liability of predecessor / successor - Extended Period of limitation - The Revenue received the duty on the very same dispatches covered under the Annexure A to the show cause notice at the time of initial clearance by the predecessor. Whether it be predecessor or successor, the excise duty liability is identified to both. There is no difference in the excise duty or interest in the present matter. There is no claim by anybody (including in particular by the predecessor) for any refund of duties already paid by the predecessor). Hence, the duty paid by predecessor ought to have been adjusted against the central excise duty, if any, payable by the writ applicant. Declining to do so, would lead to double taxation of the same transaction & clearly impermissible. - HC

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