- (1.) The writ petition has been filed challenging the letters dated 31-10-2007 and 4-1- 2008 whereby respondent No. 3 asked the petitioner to pay the outstanding excise duty of Rs. 990.36 lacs of M/s. Euro Cotspin Ltd. (for short "ECL"), in terms of the provisions of Section 11 of the Central Excise Act, 1944 (for short "the Act") read with Section 142 of the Customs Act.
(2.) E.C.L. was a defaulter of various financial institutions which ultimately authorized one of them i.e. Punjab National Bank to sell the secured assets of ECL under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short "SARFAESI Act") to realize total duties running into approximately Rs. 165 crores. In response to advertisements, one M/s. A.V. Cotex Ltd. (for short "AVC") agreed to buy the said assets for a total sale consideration of Rs. 29 crores. However, on the default of the said AVC, an agreement was entered into between it and the petitioner, as per which the petitioner made the required payment to make up 25% of the total purchase price. On the basis of this agreement, the petitioner further entered into an agreement with the Punjab National Bank which also handed over custody of the secured assets of the ECL.
(3.) Thereafter, by the impugned letters, respondent No. 3 directed the petitioner to clear the outstanding dues as aforesaid and it is this action which is impugned by way of the present writ petition.;