9911796707
TMI Blog2022 (12) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, it did not arise out of the said properties. Dues of central excise became payable on the manufacturing of excisable items by the erstwhile owner. Therefore, the excise duties were in respect of those items which were produced and not the plant and machinery which were used for the purpose of manufacturing. This decision has been followed by this Court in Gopal Agarwal v. Commissioner of Customs and Central Excise, Hyderabad, [ 2015 (2) TMI 607 - ANDHRA PRADESH HIGH COURT ]. While setting aside similar notice, this Court had however left it open to the excise authorities to take any other steps permissible in law for recovery of the arrears of excise duty. Petition allowed. - WRIT PETITION Nos.3428 of 2007, 5247 of 2006, 6180 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er came to know that M/s. Midwest Alloys Pvt. Limited had a manufacturing plant in the said land prior to purchase of the land by the petitioner pursuant to allotment made by the Andhra Pradesh Industrial Infrastructure Corporation Limited. The excise dues were payable by the said M/s. Midwest Alloys Pvt. Limited. 6. M/s. Midwest Alloys Pvt. Limited had availed financial assistance from Andhra Pradesh State Financial Corporation but for default in repayment, Corporation seized the entire assets of M/s. Midwest Alloys Pvt. Limited whereafter the said plot of land was allotted to the petitioner by duly executing conveyance deed. 7. Contending that the impugned notice is wholly unsustainable in law as excise duty payable by M/s. Midwest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereafter held as follows: 21. A harmonious reading of the judgments in Macson and SICOM would tend us to conclude that it is only in those cases where the buyer had purchased the entire unit i.e. the entire business itself, that he would be responsible to discharge the liability of Central Excise as well. Otherwise, the subsequent purchaser cannot be fastened with the liability relating to the dues of the Government unless there is a specific provision in the statute, claiming first charge for the purchaser . As far as the Central Excise Act is concerned, there was no such specific provision as noticed in SICOM as well. The proviso to Section 11 is now added by way of amendment in the Act only w.e.f. 10-9-2004. Therefore, we are esche ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld responsible in the agreement of sale . As per the High Court, these statutory liabilities would include excise dues. We find that the High Court has missed the true intent and purport of this clause. The expressions in the sale deed as well as in the agreement for purchase of plant and machinery talk of statutory liabilities arising out of the land or statutory liabilities arising out of the said properties (i.e. the machinery). Thus, it is only that statutory liability which arises out of the land and building or out of plant and machinery which is to be discharged by the purchaser. Excise dues are not the statutory liabilities which arise out of the land and building or the plant and machinery. Statutory liabilities arising out of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
