Fmn Enterprise Vs Commissioner of Customs (CESTAT Ahmedabad)
The appeals before the Tribunal arose from demands raised on auction purchasers of assets belonging to M/s. Varun Seacon Ltd., a 100% Export Oriented Unit (EOU) that had ceased operations in 1998 and was declared a sick industrial unit by the Board of Industrial and Financial Reconstruction in March 2000. Pursuant to winding-up proceedings, the Gujarat High Court appointed an Official Liquidator in March 2002 to take possession of the company’s assets. Subsequently, by order dated 07.03.2002 and further directions in April 2005, the High Court permitted sale of the company’s assets (excluding land, trees, records and certain offices) for a consideration of ₹14.08 crore to the successful bidder, subject to specific conditions regarding payment of statutory dues.
Under the High Court’s directions, the purchaser was required to pay statutory dues, if any, arising after the date of the winding-up order. Dues pertaining to the pre-liquidation period were to be settled strictly in accordance with the Companies Act, 1956. The only express liability fastened on the purchaser was payment of “dues, taxes, cess, if any, applicable on the sale of assets.” The assets were thereafter handed over by the Official Liquidator to the successful bidder and its appointee, including FMN Enterprises.
