Heard Mr.N.Surya Senthil, the learned counsel appearing for the petitioner and Mr.V.Sundareswaran, the learned Senior Panel Counsel appearing for the respondents.
2. The petitioner has filed this Writ Petition, challenging the notice issued by the third respondent, dated 12.07.2017, stating that the petitioner is liable to pay a sum of Rs.64.62 lakhs, whereas, they paid only 20.18 lakhs, and also defaulted the regular duty amount of Rs.70.68 lakhs from April to June 2017. Therefore, the petitioner was informed that, action will be initiated against them under
Section 11 of the Central Excise Act, 1944.
3. When this Writ Petition came up for hearing, this Court granted an interim order on 07.09.2017, directing the petitioner to show their bona fides by paying a sum of Rs.43.08 lakhs in two instalments on or before 22.9.2017, and the said interim order reads as follows :-
Heard the learned counsel for the petitioner and Mr.V.Sundareswaran, learned Senior Panel Counsel accepting notice for the respondents.
2.The petitioner is aggrieved by the garnishee notice issued by the third respondent for recovery of the arrears of central excise duty.
3.The first respondent was magnanimous enough to grant permission to the petitioner to pay the arrears in 18 equal monthly instalments of Rs.21.54 lakhs each. However, the petitioner has now paid only four instalments and defaulted in payment of the fifth instalment, which necessitated the third respondent to pass the impugned garnishee notice.
4.The learned counsel for the petitioner submits that due to financial difficulty, the petitioner could not honour the commitment, but now they are ready and willing to pay the monthly instalments promptly and that some reasonable time may be granted.
5.To show the bona fides, the petitioner shall pay two instalments namely Rs.43.08 lakhs (Rupees forty three lakhs and eight thousand only) (Rs.21.54 lakhs + Rs.21.54 lakhs) on or before 22.9.2017. Subject to compliance of the above condition, there will be an interim order as prayed for. It is needless to state that the petitioner shall not commit any default in payment of future instalments. List on 05.10.2017 for further directions.
4. The learned counsel appearing for the petitioner submits that the first instalments of Rs.21.54 lakhs was paid on 11.09.2017, and even before the petitioner could take steps to pay the second installment before 22.9.2017, one of the secured creditors, who had lent monies to the petitioner, viz. ICICI Bank had moved the National Company Law Tribunal (Division Bench) Chennai (NCLT) by filing CP/564(IB)/CB/2017, under
Section 7 read with Rule 4 of the Insolvency and Bankruptcy Code, 2016, and the NCLT has passed an order on 13.9.2017, appointing Mr.C.Ramasubramaniam, Insolvency Resolution Professional (IRP) as proposed by the Financial Creditor, and issued other directions to the said IRP.
5. In the light of the above development, the petitioner can no longer maintain the present Writ Petition. Accordingly the Writ Petition stands dismissed. It is open to the respondent/Department to initiate appropriate proceedings for recovery of the dues in accordance with rules. However, there shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.
05.10.2017 Speaking/Non speaking order Index : Yes/No Internet: Yes/No ms/sd To
1.The Assistant Commissioner (TRC), Office of the Commissioner of Central Excise, Puducherry Commissionerate, 1,Goubert Avenue, Puducherry 605 001.
2.The Assistant Commissioner of GST and Central Excise, Office of the Assistant Commissioner of Central Excise, Solai Nagar, Sudhaakar Nagar, Villupuram 605 602.
3.The Superintendent of GST and Central Excise (Maduranthakam-Range I), Office of the Superintendent of GST and Central Excise, Range -I, Maduranthakam, No:64, Alagesan Nagar, Chengalpet 603 001.
T.S.Sivagnanam, J.
ms/sd W.P.No.23860 of 2017 05.10.2017