2018 (11) TMI 14

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....s of the previous company M/s Nitasha Veneers Industries Pvt. Ltd. through Andhra Pradesh State Financial Corporation (APSFC). M/s Nitasha Veneers Industries Pvt. Ltd. were due to pay central excise duty and they had defaulted on their loans to APSFC. M/s APSFC seized the plant, machinery and other assets of M/s Nitasha Veneers Industries Pvt. Ltd. under section 29 of State Finance Act, 1951 and auctioned them. The appellant purchased this plant, machinery etc. from APSFC under a registered sale deed executed in their favour and hereinafter they were running the factory in their own name. 2. The department issued a letter dated 22.02.2006 informing the appellant that they were liable to pay outstanding dues against M/s Nitasha Veneers In....

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..... DR submits that the short point to be decided is whether in case where the assets of a company have been taken over by State Finance Corporation and then sold to another company, the liabilities of the central excise dues of the previous company will pass on to the bidder who takes over the assets. It is his submission that the issue is no longer res-integra as the matter has been settled by Hon'ble Apex Court in the case of Macson Marbles Pvt. Ltd. vs. Union of India [2003(158) E.L.T. 424 (S.C.)]. In that case, the industrial unit run by M/s Diamond Marbles Pvt. Ltd. was sold by State Finance Corporation which was acquired by M/s Macson Marbles Pvt. Ltd. Thereafter M/s Macson Marbles Pvt. Ltd. was running the factory in their own name. T....

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....e case of Macson Marbles Pvt. Ltd. Therefore, the first appellate authority has clearly erred in holding that the ratio of Macson Marbles Pvt. Ltd. does not apply to the present case on the ground that Rule 230(2) is no longer in the statute. 5. We have considered the arguments and perused the records. We find that Section 11 of Central Excise Act deals with the recovery of sums due to the government. The proviso thereof provides that a duty or any other sums of any kind is recoverable or due, transfers or otherwise disposes of his business or trade in whole or in part or effects any change in the ownership thereof, in consequence of which he is succeeded in such business or trade by any other person, all excisable goods, materials, prep....