2014 (8) TMI 1021 - HC - Central Excise

Sealing and locking of rented premises in 2010 by the central excise department for default on the part of tenant - Now that the tenancy has come to an end with the order of eviction passed by the Rent Controller, the respondents cannot, impose an obligation upon the petitioner to keep the goods. - Accordingly, the Writ Petition is disposed of, directing the respondents to take immediate action for the sale of the properties kept inside the premises, through public auction. The respondents shall conduct the public auction, at the earliest, sell the properties and handover vacant possession to the petitioner, within a total period of two months from the date of receipt of a copy of this order. It is made clear that irrespective of whether the auction is successfully completed or not, the respondents shall handover vacant possession of the premises within the period stipulated above. No costs. M.P. No. 1 of 2014 is closed.

Summary

Issues:
1. Petition seeking mandamus to remove lock and seal by Central Excise Department.

Analysis:
The petitioner filed a Writ Petition seeking a mandamus to direct the Department of Central Excise to remove the lock and seal placed on their premises and hand over vacant possession. The property in question was originally owned by C. Kamala, and a portion was let out to D. Venkatesan, who failed to pay excise duty, resulting in the sealing of the premises by the respondents in 2010. The petitioner, who purchased the property, sought relief as a portion of the property remained under lock and seal.

The Central Government Standing Counsel argued that a previous writ petition by the petitioner's predecessor, C. Kamala, with a similar prayer was dismissed in 2011, making the current petition not maintainable. However, the judge noted that subsequent to the earlier petition, the petitioner had filed for eviction and obtained an order in 2013, terminating the tenant's lawful occupation. As the tenant's whereabouts were unknown, the judge found the present petition maintainable.

The respondents had sold some movable properties inside the sealed premises through public auction previously, but due to unsold items, the lock and seal persisted. The judge clarified that the petitioner was not obligated to keep the goods for the benefit of the Central Excise Department after the tenant's eviction. Recognizing the need for the respondents to auction the remaining items, the judge directed immediate action for the sale of the properties through public auction within two months, mandating vacant possession handover to the petitioner regardless of auction success. The judgment concluded without costs, closing the related Miscellaneous Petition.