Excise matter
nitin jain
(Querist) 14 July 2012
This query is : Resolved
Dear Sir/Madum,
If an assesee lost the case in supreme court and supreme court order for the payment of excise duty + penalty + interest to excise department.This amount is more than total worth of the company.
1) In this situation the assesse can go to excise settlement commission or not to save the company?Is there any chance to write off panalty and interest by the settlement commission as the company can only manage to pay the duty?
2)If the first option not possible then what things the excise department can sell to recover the revenue?Only the company property could sell or personal asset of the directors can be sold off?
please reply we are very affraid as no body is guiding us properly.
thanx
ram prakash
(Expert) 19 July 2012
Option I to go for settlement is not available as it is at the stage of adjudication only that one can go for settlement rather than going in for departmental proceedings;
once the arrears have been finally adjudged, all movable and immovable assets in the name of the company as on the date of offence can be attached even if they have been transferred ; this is under proviso to section 11A of the Central Excise Act; For a limited company, the assets owned by the directors out of their known resources are not attachable in my opinion but if t he proceeds of the duty evaded are invested in such properties, the same can be recovered; hope it answers your query
nitin jain
(Querist) 19 July 2012
thanks mr. ram prakash ji for your valuable guidence.
