SM 1 908.wp.1359.11 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO. 1359 OF 2011 M/s. Precision Non Ferrous P Ltd. ....Petitioner. Versus Union of India and others ....Respondents. ____________ Mr. M. S. Murty for the Petitioner. Mr. Pradeep S. Jetly with Mr. S. D. Bhosale for the Respondents. CORAM: DR. D. Y. CHANDRACHUD & A. A. SAYED, J.J. DATED : SEPTEMBER 6, 2011. P.C.: By these proceedings, the Petitioner seeks to question a communication dated 21 March 2011, issued by the Assistant Commissioner (TRC), Central Excise, Thane-II. By the aforesaid communication, the Assistant Commissioner reiterated the legality of an attachment levied on certain immovable property situated at Palghar in the district of Thane. 2. From the Affidavit-in-Reply, it emerges that, the Central Excise Department had dues against Citadel Exports Private Limited. The aforesaid party had a Central Excise registration for the manufacture of excisable goods and was engaged in the manufacture of metal containers falling under sub-heading SM 2 908.wp.1359.11 7310.00 of the Central Excise Tariff Act, 1985. Between 19 April 1989 and 18 September 1989, the Central Excise Department issued show cause notices, which resulted in four orders of adjudication passed respectively on 15 February 1991, 25 February 1991, 20 March 1991 and 15 December 1991. Demands of Rs.2,37,941/- were confirmed. In the reply, it is stated that, the vendor closed down its manufacturing unit from May 1989, and the adjudication orders were sent to its Mumbai office by Registered Post A.D. All the show cause notices were served by hand delivery under acknowledgment. Canara Bank had also instituted proceedings before the Debts Recovery Tribunal for the realisation of its outstanding dues. The Assistant Commissioner of Central Excise filed an intervention application in the recovery proceedings on 26 December 2003. An out of court settlement was entered into by the Canara Bank and the proceedings were disposed of on 6 March 2007. In order to realise the outstandings due from the vendor towards Central Excise duty and interest, an action was initiated under Section 11 of the Act and Rule 230 of the Central Excise Rules, 1944. Property belonging to the vendor being Plot No. 16, Survey No. 55, Palghar (West), Thane was attached on 3 August 2007 under Section 142 (1)(c)(ii) of the Customs Act, 1962 as made applicable to Central Excise cases by SM 3 908.wp.1359.11 Notification No. 68/63-CE dated 4 May 1963. The Petitioners addressed a letter dated 1 August 2008 to the Superintendent of Central Excise, Range IV, Palghar Division Thane-II, stating that it had purchased the property from Citadel Exports Private Limited and they were ready and willing to pay the Government dues, if applicable. The Range Superintendent of Central Excise, by a letter dated 25 August 2008, furnished information in respect of the duty of Rs.2,37,941/- and interest computed at the applicable rate with effect from 26 May 1995 under Section 11 AA of the Central Excise Act, 1944 till 31 July 2008. The Excise Department has taken steps to move the State Revenue Department for recording its charge on the property. 3. Counsel appearing on behalf of the Petitioner submitted that, an adjudication had taken place in 1991 prior to the enforcement of Section 11AA which imposes a liability to pay interest. This submission is directly in the teeth of the proviso to Section 11AA, which, expressly contemplates a liability to pay interest where a person chargeable with duty determined under Section 11A (2) before the date on which the Finance Bill of 1995 received the assent of the President, fails to pay such duty within three months from such date. In such an event, such person shall SM 4 908.wp.1359.11 be liable to pay interest under Section 11AA from the date immediately after three months from such date, till the date of payment of such duty. 4. Having regard to this provision, we do not find any reason to interfere under Article 226 of the Constitution. 5. The Petition is accordingly dismissed. (A. A. SAYED, J.) (DR. D. Y. CHANDRACHUD, J.)