2014 (2) TMI 1281 - AT - Central Excise

Attachment of property - recovery of Government dues - Sec. 142 (1)( c) (ii) of the Customs Act 1962 read with Rule 4 - Held that - the issue involved in the current appeal before us is identical to the issue which was decided by the majority order in the case of of Rajabali Ismail Rajbara vs. CCE., Surat 2014 (3) TMI 483 - CESTAT AHMEDABAD (LB) - Since the issue is covered by a majority decision, and nothing is brought to our notice as to the said order is over turned by higher judicial forum, following the same we allow the appeal and set aside the impugned order - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
Recovery of Government dues under Sec. 142 of the Customs Act 1962 by attaching the property of the appellant leased to a 100% EOU company.

Analysis:

Issue 1: Recovery of Government dues under Sec. 142 of the Customs Act 1962
The appellant executed a lease deed for a factory, including land, building, and plant and machinery, to a 100% EOU company. The lease was to be valid until a specified date, and the factory was not to be vacated until export/lease obligations were fulfilled by the lessee. The lessee faced demands and a Show Cause Notice for non-payment of Government dues. The authorities relied on Sec. 142 of the Customs Act to hold the appellant liable for the recovery of Government dues under Rule 4 of the Customs (Attachment of the Property of Defaulter for Recovery of Govt Dues) Rules 1995.

Issue 2: Applicability of precedent
Both parties agreed that the issue in question was similar to a previous decision by the Bench in the case of Rajabali Ismail Rajbara vs. CCE., Surat. The Tribunal found that the current appeal mirrored the issue decided in the earlier case. As the issue was covered by a majority decision in the previous case and there was no indication of it being overturned by a higher judicial forum, the Tribunal allowed the appeal and set aside the impugned order based on the precedent.

In conclusion, the Tribunal allowed the appeal concerning the recovery of Government dues under Sec. 142 of the Customs Act 1962 by attaching the property leased to a 100% EOU company. The decision was based on the applicability of a previous majority decision by the Bench, leading to the setting aside of the impugned order.