2018 (4) TMI 62

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....Company - Proprietor Sudhir Kapoor, (hereinafter referred to as Appellant), holding Central Excise Registration No, ANJPK6039RXM001, was engaged in the manufacture & clearance of Club-I O, Love-IO and Indus Brands Filter Cigarettes falling under Chapter Heading No. 24022040 of the first schedule to the CETA, 1985. Late Sudhir Kapoor was the Proprietor till his death on 28/06/2015   3. Case was booked against the Appellant by a team of Preventive Officers, Central Excise Division Aligarh on charge of clandestine manufacture and clearance of cigarettes. Accordingly, Show Cause Notice No.51/Commr./LKO/CX/2012-13 dated 20/03/2013 was issued to the appellant, proposing duty demand of Rs. 62,42,566/- under Section 1 IA (4) of the Excise A....

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....was pending before this Tribunal, the Proprietor of the Appellant, Shri Sudhir Kapoor died on 28/06/2015. Direction was issued by the Tribunal to issue notice to legal heir through Commissioner. The matter was put for hearing on 01/09/2016, 7. On the aforesaid intimation of next date of hearing, a written submission dated 01/09/2016 was submitted by M/S Saroj Kapoor, wife of late Sudhir Kapoor. In brief, she made following submissions, that- • 'Her husband died on 28/06/2015. Before, his death factory was closed. • The plant and machineries had been attached by the Central Excise Department for recovery of dues. Thus aforesaid property is in the possession of Department. • As a legal heir of lat....

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....lied upon case laws, we find that instant case is covered by the judgment of Hon'ble Karnataka High Court in the matter of Commissioner of C. Ex., Bangalore v. Dhiren Gandhi (Supra). The Hon'ble Court held- "8. The amount due to the Government under Section 1 1 is also recoverable from the person to whom the person chargeable to duty under the Act has transferred or otherwise disposed of its business or trade in whole or in part or effects any change in the ownership thereof in consequence of which he succeeded to such business or trade by any other person, i.e., monies can be recovered from the  successor in respect of the amounts due from such predecessor at the time of such transfer or otherwise disposal or change T....

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....r the dues under the Act from the manufacturer who is the person who is charged with the duty to pau tax, would be unreasonable. If his family members were to take over the business after his death, continued to carry on the very same business, probably they would comply with the requirements of the statute. If they do not take over the business or comply with the provisions of the Act, they cannot be held liable of the dues of the deceased That appears to be the principle underlining these two provisions. .......... .......... 12. The legislature, while amending Section 11 by introducing a proviso, did not foist any liability on the legal heirs of a deceased assessee under the Act. The intention is clear. That in....