Maya Spinners Ltd And Others Vs Bank of Baroda And Others (Madhya Pradesh High Court)
Madhya Pradesh High Court held that customs department and central excise department doesn’t not have priority over other secured creditors for recovery of dues from mortgaged property.
Facts- M/s Kowa Spinning Ltd., Dhamnod, District Dhar was registered with Customs and Central Excise Division Ratlam. Respondent No.3 Maya Spinners Ltd., Nimrani, was a 100% export-oriented unit registered with Customs and Central Excise Division-I, Indore. Likewise, respondent No.4 M/s Maya Spinners Ltd., Plot No.21, was also registered with Customs and Central Excise Division, Pithampur. Respondent No.2 was engaged in manufacturing cotton yarn, synthetic yarn and blended yarn falling under the Schedule of the Central Excise Tariff Act, 1985. Respondent No.3 was also a 100% export-oriented unit engaged in manufacturing cotton yarn, synthetic yarn and blended yarn.
According to the petitioner, respondent No.3 imported manufacturing machines without payment of central excise duties of Rs.10,14,099/- and custom duties of Rs.51,00,988/- for the manufacturing of export goods.
The Central Excise Intelligence conducted a search in the factory premises of M/s Kowa Spinning Ltd. and seized the Autoconer Machine (Autoconer System 238) valued at Rs.90,00,000/-. Thereafter, a show- cause notice was issued for recovery of excise duty and interest to all three respondents.
