The Customs, Excises, and Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench ruled that the Central Excise dues can not be recovered from wife’s property on default of the husband’s proprietary firms.
By four registered Sale Deeds, the appellant, Mrs Meena Krishna Agarwal purchased four flats in the building. The said flats were purchased from “Patwa Parikh Construction Company‟ for the price of Rs. 26,32,500/- per flat i.e. total Rs. 1,05,30,000/-.
Subsequent to the purchase of said four flats by the appellant in the year 2008, the Assistant Commissioner of Central Excise issued letter to the Superintendent, City Survey No. 2, Vadodara in which it is stated that the Excise department is contemplating attachment of the said four flats, standing in the name of the appellant to realize the government dues which were confirmed by order-in-original against two proprietary firms namely Gujchem International and Gujarat Impex of the appellant’s late husband Mr. Krishna Agarwal and which order-in-original is upheld by the Tribunal by order.
By the said letter, the said Superintendent, City Survey, Vadodara was requested to issue necessary instructions not to permit sale/ transfer of the said Four Flats by the Appellant. Based on the said request of the Assistant Commissioner of Central Excise, the Superintendent, City Survey issued Notice noting the encumbrance lodged by the Assistant Commissioner of Central Excise and prohibiting transfer of the said Flats.
The issue involved in the present appeal is whether the flats belonging to the appellant which she purchased under Registered Sale deeds dated 31.03.2008 out of monies received as gifts from her mother-in-law and father-in-law, can be proceeded against by the Excise department for recovery of Central Excise dues confirmed by order-in-original dated 21.12.2005 against two proprietary firms of her late husband Mr. Krishna Agarwal.
The coram of Ramesh Nair noted that the appellant is the sole owner of four flats purchased from her own source of income and not inherited from her late husband Shri Krishna Agarwal or even any member of the family.
Therefore, the CESTAT while allowing the appeal held that the impugned order is not sustainable, he order issued by Assistant Commissioner of Central Excise to the Superintendent, City Survey-2, Police Bhavan, Vadodara by which encumbrance on the four flats was created is quashed and set-aside.
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