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TMI Blog2018 (11) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... thereof provides that a duty or any other sums of any kind is recoverable or due, transfers or otherwise disposes of his business or trade in whole or in part or effects any change in the ownership thereof, in consequence of which he is succeeded in such business or trade by any other person, all excisable goods, materials, preparations, plants, machineries, vessels, utensils, implements and articles in the custody or possession of the person so succeeding may also be attached for the purpose of recovering such duty or other sums. Whether such liability continues where the assets are attached by State Finance Corporation and then sold to another company? - Held that:- Hon ble Supreme Court has held so in the case of Macson Marbles Pvt. L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unning the factory in their own name. 2. The department issued a letter dated 22.02.2006 informing the appellant that they were liable to pay outstanding dues against M/s Nitasha Veneers Industries Pvt. Ltd. in terms of Section 11 of Central Excise Act, 1944. As the respondent did not pay the due amount, attachment order was issued by the Asst. Commissioner for the plant, machinery and the finished goods. Aggrieved, an appeal was filed by them before the first appellate authority, who set aside the attachment order and allowed the appeal. In para 16 of the impugned order, the first appellate authority observed as follows: 16. Succession therefore has a recognized connotation. The tests of change of ownership, integrity, identity a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Diamond Marbles Pvt. Ltd. was sold by State Finance Corporation which was acquired by M/s Macson Marbles Pvt. Ltd. Thereafter M/s Macson Marbles Pvt. Ltd. was running the factory in their own name. The department sought to proceed against the plant and machinery of the owner to whom it was transferred, holding that Section 11 and Rule 230(2) of Central Excise Rules 1944 would apply to the case. The Hon ble Supreme Court held as follows in para 6. 6. The argument advanced by the appellant that sale having taken place under the State Act free of encumbrances and the transferor s rights or liabilities cannot be that of transferee does not hold goods. Section 29(2) of the State Act makes it clear that the property pledged, mortgaged, hypot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or trade in whole or in part or effects any change in the ownership thereof, in consequence of which he is succeeded in such business or trade by any other person, all excisable goods, materials, preparations, plants, machineries, vessels, utensils, implements and articles in the custody or possession of the person so succeeding may also be attached for the purpose of recovering such duty or other sums. The only question is whether such liability continues where the assets are attached by State Finance Corporation and then sold to another company. The Hon ble Supreme Court has held so in the case of Macson Marbles Pvt. Ltd. (supra). It is true that in the case of Macson Marbles Pvt. Ltd., Rule 230(20 of Central Excise Rules 1944 were refe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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