9911796707
TMI Blog1995 (10) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to M/s L.K. Sugar Pvt. Ltd. was acquired under Section 3 of the U.P. Sugar Undertaking (Acquisition) Act, 1971 and vested in the appellant Corporation with effect from 4-5-1979. According to the Excise Department, a sum of Rs. 94,653.41 P. pertaining to the prior period was outstanding from the erstwhile owners on that date and this amount was recovered by (a) debiting the PLA of the erstwhile owners to the extent of their balance of Rs. 34,855/- and (b) by debiting the PLA of the appellants of the remaining amount of Rs. 59,798.40 P. on 1-3-1995. The appellants preferred a refund claim on 26-8-1995 for the amount mentioned at S1. No. (b) which was rejected as not admissible by order of the Assistant Collector of Central Excise, Gorakhpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertaking (Acquisition) Act are in pari materia with those of the Gujarat Act, the judgment of the High Court squarely applies to the facts of this case. 4. The learned DR Shri Mewa Singh, while reiterating the findings of the lower authorities, submits that since the appellants had entered into an agreement with the Central Excise Department for recovery of the past dues, the amount is liable to be paid by them and no refund is permissible. 5. We have carefully considered the arguments of both the sides. We find that the Collector (Appeals) has relied upon Article 246 of the Constitution of India and Section 15 (iii) of the Acquisition Act, 1971 and held as under : The laws made by the Central Govt. under Article 246 of the Constitut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cle 246 of the legislature of State, also have the powers under clause (2) of Article 246 to make laws with respect to any of the matter enumerated in list III. Transfer of property other than agricultural land, registration of deeds and documents come under entry No. 6 of List III. Acquisition and requisition of property comes under entry No. 42 of List III. Article 254 of the Constitution also provides that if any law made by State legislature is repugnant to any law made by Parliament, Parliament is competent to enact or to any provision of existing law with respect to one of the matters enumerated in the concurrent list (list III) then the law made by the Parliament or the existing law shall prevail and the law made by the State leg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioners urges that in view of the clear provisions of Section 5(1) read with 4(2) of the Act No. 10/86. Which are in pari materia provisions of Act No. 25/86, the assets or the original companies have vested in the Corporation free from all encumberances and the liabilities existing against the original company before the appointed day viz. 1-1-1986 have not been taken over by the Corporation. Under the proviosions of the Act, the Corporation is not liable for any sum which was due from the original company prior to the appointed day. The learned Counsel for the respondents urges that the Corporation being a successor to the companies nationalised, it is under an obligation to discharge the liabilities to be discharged by it as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he nature of claims to be specified out of the compensation. Section 6(a) specifically provides for deduction of any amount due on account of any debt, mortgage, charge on encumberance or lien, trust or similar obligation attached to the Scheduled undertaking which by virtue of the provisions of Section 3 shall on the appointed day, attach to the compensation in substitution for the undertaking. 7. The ratio of the High Court judgment applies on all fours to the present case. The SLP filed by the Department against the High Court judgment was dismissed on 6-3-1995 and it is pertinent to note that the High Court judgment has been challenged on the same grounds which form the basis of the reasoning of the Collector (Appeals) in this case. A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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