2003 (11) TMI 71

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....ered into between them. On 4-12-1987, the Additional Collector of Central Excise adjudicated in a proceeding arising out of show cause notice issued under Section 11A of the Central Excise Act to respondent No. 4 in relation to certain goods that are said to have been removed between 13-8-1986 and 23-8-1986 and excise duty of Rs. 1,04,586.17 and penalty of Rs. 3 lakhs was levied and demanded. 2.A letter was sent by the Central Excise Department to the appellant demanding a sum of Rs. 4,07,291.75 pursuant to the adjudication order made against respondent No. 4. The appellant in his letter to the Department contended that it had no liability to pay the excise dues of respondent No. 4. The Department not having acceded to it, a writ petitio....

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....before this Court. It is also submitted that as held in N.B. Sanjana, Assistant Collector of Central Excise, Bombay and Ors. v. The Elphinstone Spinning and Weaving Mills Co. Ltd. - 1978 (2) E.L.T. (J 399) the penalty was not attracted in the present case at all. She also relied upon the decision of this Court in Isha Marbles v. Bihar State Electricity Board and Anr. - (1995) 2 SCC 648 to contend that in case of sales effected under Section 29(1) of the State Act, the recovery of dues of previous owner from the auction purchaser could not be made. 4.Now taking the last contention first we may notice that this Court in Isha Marbles considered the scope of Section 24 of the Electricity Act and held that there is no charge over the property....