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TMI Blog2015 (10) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... the defaulter against whom steps could be taken under the Rules. It was clarified that a defaulter is a person from whom dues are recoverable under the Act and that there was no provision in the Customs Act 1962 corresponding to Section 179 of the Income Tax Act, 1961 or Section 18 of the Central Sales Tax, 1956, which enabled the revenue authorities to proceed against directors of companies, or such like third parties, who are not defaulters. On a consideration of the facts in the instant case, I find that they are similar to the case that was considered by the Delhi High Court in the aforesaid decision, and hence, following the said judgment of the Division Bench of the Delhi High Court, I allow this writ petition by quashing Ext.P2 notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Dues) Rules, 1995. It is the specific case of the petitioner that there is no provision under the Central Excise Act and Rules that would enable the respondents to proceed against the petitioner for recovery of the dues of the company. Ext.P2 notice is therefore impugned in the writ petition in which there is also a prayer to direct the respondents not to take any coercive steps to attach the movable and immovable properties of the petitioner to recover the Government dues of the company. 2. A counter affidavit has been filed on behalf of the respondents wherein the stand taken is that the petitioner was a Director of the company during the relevant period and, it was on account of his being a Director of the company during the mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said Rules, in a case where the authorities under the Central Excise Act sought to proceed against the Director of a company for realisation of the dues of the company, came up for consideration before the Delhi High Court in the decision reported in Anita Grover v. Commissioner of Central Excise and Others - 2013 (288) E.L.T. 63. A Division Bench of that court, while considering the applicability of the aforementioned Rules, held that it is only the defaulter against whom steps could be taken under the Rules. It was clarified that a defaulter is a person from whom dues are recoverable under the Act and that there was no provision in the Customs Act 1962 corresponding to Section 179 of the Income Tax Act, 1961 or Section 18 of the Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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