2012 (12) TMI 391

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....eing that the company (M/s Kapri International Pvt. Ltd.- now in liquidation) is not liable to pay any interest; the principal amount of Rs.1,68,82,344/- be accepted by the Department in full and final settlement of his claim. 2. Pleadings are complete. 3. Record has been perused. 4. There were seven adjudication orders which have been passed by the Department. 5. After some arguments and the inter-se clarifications which have been made before this Court, the total amount quantified is Rs.1,85,04,400.76. (i) Order No. 34/1988 6. This is the first adjudication order. It is dated 28.10.1988. Vide this order, a penalty of Rs.5 lacs had been imposed upon the company (in liquidation) which amount has since been deposited by the company on ....

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.... imposed as a redemption fine as well. There is no dispute to this figure. Thus a total sum of Rs.55,60,859.76 is the amount payable under this head. (iv) Order No. 17/1991 9. This is the fourth adjudication order. It is dated 27.02.1991. The amount payable under this head is Rs.42,37,274/- which was the duty levied upon the company. (v) Order No. 18/1991 10. This is the fifth adjudication order. It is dated 28.02.1991. The amount payable under this head is Rs.16,27,685/- which was the duty levied upon the company. (vi) Order No. 69/1983 11. This is the sixth adjudication order. It is dated 27.05.1993. The amount payable under this head is Rs.4,83,171/- which was the duty levied upon the company. (vii) Order No. 50/1993 12. This is ....

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.... order. Reliance has also been placed upon 2002 (144) E.L.T. 347 (Tri.-Del.) Prabhat Zarda Factory Ltd. Vs. Commissioner of C. Ex. Delhi; submission being that under Section 11-AA, the 'relevant date' is the date on which the duty was determined and if the assessee fails to pay the duty within three months from the date of such determination, interest has to be paid. Further submission being that in all the aforenoted adjudication orders, except for Order No. 40/1996 (which order was passed on 14.08.1996) all other adjudications had been made prior to the incorporation of Section 11-AA; the 'relevant date' would be the date on which the duty was determined and the liability of the company to pay the interest would arise from that date. Furt....

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....bility to a company in liquidation was negatived which necessarily has to be governed by the provisions of the Companies Act. 17. In the present case, admittedly, the company had gone into liquidation on 01.05.1995; Chapter VII of the Companies Act would be applicable. The Central Excise Department is only a preferential creditor; he has to be paid only after the claim of the Employees Provident Fund Commissioner (if any) and the secured creditor as also the workmen have been met with. The Liquidator R.K. Arora is present in Court today. The fund position of the company has been detailed by him as Rs.2,20,00,000/-. It is pointed out that there was only one secured creditor who has since been paid; the claims of the workmen have already be....