2009 (1) TMI 576

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....k over the factory in September, 2002. At the time of obtaining of Central Excise registration, the appellant had given an undertaking on non-judicial stamp paper, to pay the past and future liabilities of M/s. Pawansuit Dyg. & Ptg. Mills. A show cause notice was issued on 20-12-2004 for clandestine removal, which culminated into demand of Rs. 4,89,914/- with equivalent amount of penalty and interest as applicable. 2. Heard both sides. Ld. Consultant states that show cause notice was issued to M/s. Pawansuit Dyg. & Ptg. Mills. However, the adjudication order and Order-in-Appeal have been issued to the appellant in view of the undertaking given by them on the stamp paper to fulfil all the past and future liabilities. Ld. Consultant f....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....appellants and confirming of the demand and penalty against the appellants was totally wrong. 3. The ld. DR submits that according to Section 11 of the Central Excise Act, the transferee/successor who has taken over the business of an assessee shall be liable to pay the sums due to the Government. He also submits that the appellants had given a written undertaking to the Department which has been reproduced by the Commissioner (Appeals) in para 5.4 of the order. This undertaking not only undertakes to pay the past and future liabilities of M/s. Pawansuit Dyg. & Ptg. Mills but also undertakes to file reply to show cause notice in respect of pending matters and also to answer the queries relating to the activities of the said M/s. Paw....