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TMI Blog2003 (6) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... hort-levy. This demand has to be met, if it remains unpaid by the legal representatives even after the death of their predecessor-in-interest. This is a case where the short-levy has been noticed during the life of their predecessor. Suppose there had been a case of excess levy from the predecessor-in-interest. If the argument advanced by the learned Counsel for the writ petitioners is accepted, it will lead to a situation that the legal representatives of a manufacturer who had paid more duty, than is necessarily payable under the Act will be disabled to claim excess amount paid by their predecessor. The law will not create such an anomalous position. Therefore the liability as well as entitlement has to be viewed in the same angle with re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r who was no more. There was no law enabling the officer to continue the proceedings with reference to the short-levy of the excise duty payable by the deceased, against his legal representatives. But this question was not decided by the authority, who issued Ext. P4. It was at that point of time, the writ petitioners approached this Court challenging Ext. P4 and seeking a declaration that the entire proceedings commencing or continuing from Ext. P3 as abated due to the death of their father. It was contended that Section 11A of the Central Excises and Salt Act, 1944, which enables the Revenue authority to collect the dues payable including short-levy, does not enable the officer to proceed against the legal representatives of the deceased, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be, as referred to in the said Rules. These proceedings can be initiated against whoever found chargeable with the duty. When the husband of the first writ petitioner and the father of the remaining writ petitioners on whom Ext. P3 had been served is no more, Ext. P4 notice can be issued to writ petitioners. It is further contended that when proceedings are initiated legally by issuing a notice under Section 11A notwithstanding the death of the person on whom the notice has been issued, the proceedings can be continued against his legal representatives. Therefore, there is no illegality in continuing the proceedings by calling upon the writ petitioners, in Ext. P4, to show cause to the proceedings initiated. It is further contended that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest. 4. It is in the aforesaid perspective, we have to examine whether the power of Central Excise Officer under Section 11A can be exercised after the death of the person concerned who is styled as manufacturer, warehouse keeper or the purchaser as the case may be. 5. The decision rendered in the Commissioner of Income Tax, Bombay v. Ellis C. Reid (AIR 1931 Bombay 333) was in respect of the Income Tax Act, 1922. The proceedings were initiated under Section 23(4) and consequently followed under Section 29 by issuing a notice to remit the tax assessed under Section 23(4) consequent on the death of the original assessee. While holding that proceedings under Section 23(4) and consequently a notice under Section 29 of that Act cannot be issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. Obviously he has to pay the balance duty as well, if there was a short-levy. This demand has to be met, if it remains unpaid by the legal representatives even after the death of their predecessor-in-interest. This is a case where the short-levy has been noticed during the life of their predecessor. 9. Suppose there had been a case of excess levy from the predecessor-in-interest. If the argument advanced by the learned Counsel for the writ petitioners is accepted, it will lead to a situation that the legal representatives of a manufacturer who had paid more duty, than is necessarily payable under the Act will be disabled to claim excess amount paid by their predecessor. The law will not create such an anomalous position. Therefore the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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