Tribunal allows appeal on recovery of Government dues by attaching property leased to EOU company

The Tribunal allowed the appeal regarding the recovery of Government dues under Sec. 142 of the Customs Act 1962 by attaching the property leased to a 100% EOU company. The decision was based on the applicability of a previous majority decision by the Bench, leading to the setting aside of the impugned order.

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Issues involved:
Recovery of Government dues under Sec. 142 of the Customs Act 1962 by attaching the property of the appellant leased to a 100% EOU company.

Analysis:

Issue 1: Recovery of Government dues under Sec. 142 of the Customs Act 1962
The appellant executed a lease deed for a factory, including land, building, and plant and machinery, to a 100% EOU company. The lease was to be valid until a specified date, and the factory was not to be vacated until export/lease obligations were fulfilled by the lessee. The lessee faced demands and a Show Cause Notice for non-payment of Government dues. The authorities relied on Sec. 142 of the Customs Act to hold the appellant liable for the recovery of Government dues under Rule 4 of the Customs (Attachment of the Property of Defaulter for Recovery of Govt Dues) Rules 1995.

Issue 2: Applicability of precedent
Both parties agreed that the issue in question was similar to a previous decision by the Bench in the case of Rajabali Ismail Rajbara vs. CCE., Surat. The Tribunal found that the current appeal mirrored the issue decided in the earlier case. As the issue was covered by a majority decision in the previous case and there was no indication of it being overturned by a higher judicial forum, the Tribunal allowed the appeal and set aside the impugned order based on the precedent.

In conclusion, the Tribunal allowed the appeal concerning the recovery of Government dues under Sec. 142 of the Customs Act 1962 by attaching the property leased to a 100% EOU company. The decision was based on the applicability of a previous majority decision by the Bench, leading to the setting aside of the impugned order.

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