2007 (7) TMI 319

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...., whereby the Machinery/Plant of the petitioner-company has been ordered to be detained vide panchnama dated March 4, 2005, Annexure P/15. 2. It has been claimed by the petitioner-company that it was a purchaser of the industrial unit from M.P.F.C. The aforesaid industrial unit was originally owned and being run by M/s. Ganga Sagar and Company Pvt. Ltd. but the aforesaid company became defaulter ....

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....Act. It has been maintained that the said proviso gave a power to the department to recover the dues from the excisable goods, material, preparation, plants, machineries etc., when the original manufacturing unit had been sold by the earlier management with the liabilities to pay excise duties to a new owner. Reliance in this regard has also been placed upon Rule 230(2) of the Central Excise Rules....

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.... apparent that the aforesaid question of jurisdiction and the authority of the department has not been examined by any of the authorities at any stage. The aforesaid question goes to the root of the case and in fact, if, as claimed by the learned Sr. Counsel for the petitioner- company, there was no provision to enforce the liabilities of the previous owner against the new owner, then obviously th....