2013 (5) TMI 848 - HC - Central Excise

Summary

Issues involved: Challenge to recovery notice for Excise duty and penalty.

Summary:
The writ petition challenged a recovery notice dated 14-2-2012 demanding payment of &8377; 1,02,193/- (Excise duty of &8377; 37,259/- and penalty of &8377; 64,934/-) along with interest. The petitioner argued that the dues were against M/s. Nakoda Steel Mills Pvt. Ltd., which was later purchased by the petitioner from the auction. The petitioner contended that there was no agreement to pay the liability to the respondents and sought to set aside the impugned order. On the other hand, the respondent Department relied on Section 11A of the Central Excise Act, 1944, to assert their entitlement to recover the amount from the petitioner.

During the proceedings, both parties agreed to allow the petitioner to make a representation to the respondent-Department against the recovery notice. The Court disposed of the writ petition, granting the petitioner liberty to file a fresh representation within three weeks, along with a certified copy of the order. The petitioner was permitted to present all factual and legal arguments, including relevant judgments. The respondent-Department was directed to consider the representation within one month from its receipt, following the law. The petitioner was also informed of the option to challenge any adverse decision in accordance with the law. Additionally, the stay application No. 3479/2012 was also disposed of.