AP HC says Auction Purchaser Not Liable for Predecessor’s Excise Dues

The Andhra Pradesh High Court quashed a demand of ₹28.42 lakh raised against an auction purchaser for the outstanding Central Excise dues of the previous owner. The Court held that the purchaser had acquired only land and buildings, not the manufacturing business as a going concern. Applying the Supreme Court's ruling in Rana Girders, it recognised the priority of the secured creditor over excise dues and held that the proviso to Section 11, effective from 10 September 2004, could not apply to the February 2004 acquisition.