CHOKSI SILK MILLS Vs. UNION OF INDIA

JUDGEMENT

(1.) The applicant ori. petitioner has filed this Misc. Civil Application seeking modification in the order dated 10.3.2011 passed by this Court in Misc. Civil Application No.607 of 2011 by modifying/ deleting/substituting the condition of deposit of total sum of Rs.93,64,004/- minus the amounts already paid (i.e. the remaining amount of Rs.49,64,004/-) by 1.4.2011 and in place of it directing the respondents to accept the land bearing Survey No.409/11 admeasuring 2737.45 Sq.Mtrs., situated in Surat as security by creation of a mortgage/charge over the said land and thereby directing the respondents to restore the appeal Nos.E/643 and 644/2007 to the file for expeditious hearing.

(2.) This Court has passed an order on 8.4.2011 in this application calling upon an explanation from the respondent as to why even after flouting previous order dated 24.6.2008 in Special Civil Application No.6693 of 2008 and without even pendency of any matter before any Court, the respondents have not taken appropriate steps for recovery of the amounts for which liability of the petitioner had already crystallized way back in the year 2006 when the Order-in-Original confirming the demand of cenvat credit of Rs.93,64,004/- was made and penalty of equivalent amount with interest was imposed. The Court has also directed that the higher officer concerned in the office of respondent No.3 should file an affidavit explaining prima facie lapses on the part of the respondents effecting recovery of overdue amounts from the petitioners by the next date of hearing.

(3.) Pursuant to the above order, respondent No.3 i.e. Commissioner, Central Excise & Customs, Surat-I, has filed a detailed affidavit explaining the steps taken by the Excise Department for enforcing the recovery of the outstanding amounts from the petitioners. It is, inter alia, stated that on 8.4.2011 when this Court has passed an order calling for an explanation the Assistant Commissioner, Surat Municipal Corporation, Surat, furnished property details of the petitioners and issued Certificate that a sum of Rs.185.20 lacs has been demanded and is payable by the petitioners by way of duty/penalty/interest under the Central Excise Act and has not been paid and can be recovered from the said property, namely, 0025 paiki, West Udhna Magdalla Road, Khatodara, Surat in the manner provided in Section 11 of the Central Excise Act, 1944 or Rule 230 of Central Excise Rules, 1944 or Section 142(1)(c)(b) of the Customs Act. On the same date i.e. 8.4.2011 the Range Superintendent addressed a letter to the City Survey Officer, Surat requesting him to go through the details of the Certificate issued by the Assistant Commissioner, Surat Municipal Corporation and provide the land records i.e. property card details alongwith the name of persons/owner interested in the land in question. On 12.4.2011 inventory of immovable properties attached at the premises of the petitioner at Plot No.409, Udhna Magdalla Road, Surat under Rule 5 of the Customs (Attachment of Property of Defaulters for Recovery of Government dues) Rules, 1995, was taken. It is further stated that the required steps for recovery of dues from the petitioners have been taken by the Excise Department during the period while no stay/injunction granted by CESTAT was in operation. It is further stated that after this Court passed an order on 24.6.2008 and on expiry of time limit prescribed therein the Department Officers have commenced proceedings for recovery of dues from the petitioners. The Dy. Commissioner, Central Excise & Customs, Division-I, Surat-I, has issued notice of demand in Appendix-II to the petitioners requiring them to pay amount of Rs.2,44,04,008/- within seven days from the date of receipt of the notice and also informed the petitioners that in case of default, steps would be taken for realization of the amount in accordance with the provisions of the Customs (Attachment of Property of Defaulters for the Recovery of Government Dues) Rules, 1995. Simultaneously, in the said process, the Range Superintendent has issued notice of demand to the petitioners and has also simultaneously applied to the Assistant Commissioner (Finance), Surat Municipal Corporation, Surat requesting to provide details of property, if any, in the name of the petitioners for taking necessary action for recovery of government dues from petitioner. The Range Superintendent has by letter dated 21.1.2010, 10.3.2010, 30.6.2010, 23.9.2010 and 16.3.2011 also requested the City Mamlatdar, Udhna to supply details of all types of property/land in the name of the petitioners for the purpose of making recovery of government dues from the petitioners and such other defaulters. It is further stated that pursuant to the Certificate issued by the Assistant Commissioner, Central Excise & Customs, Division-I, Surat, under Section 142(1)(c)(ii) of the Customs Act, 1962 certifying that a sum of Rs.182.29 lacs has been demanded from and payable by the petitioners and by letter dated 8.4.2011 the City Survey Officer, Surat was requested to go through the property details of the petitioners and provide land records for the same. Accordingly, after receipt of the details of the land records of the petitioners on 12.4.2011 immovable properties of the petitioners being land admeasuring 2737.45 Sq.Mtrs., approximately valued at Rs.6,02,23,900/- was attached by exercising power under Section 142 of the Customs Act, 1962 read with provisions of the Customs Act (Attachment of Property of Defaulters for the Recovery of Government Dues) Rules, 1995.