Judgement

ORDER :- An Industrial unit run by M/s. Diamond Marbles Pvt. Ltd.-respondent No. 4 was brought to sale in terms of Section 29 of the State Financial Corporation Act, 1951 (for short, the State Act) by Rajasthan Financial Corporation-respondent No. 3. Appellant before us participated in auction and its bid having been accepted took possession of the said unit on 28-8-1987 pursuant to the agreement entered into between them. On 4-12-1987, the Additional Collector of Central Excise adjudicated in a proceeding arising out of show cause notice issued under Section 11-A of the Central Excise Act to respondent No. 4 in relation to certain goods that are said to have been removed between 13-8-1986 and 23-8-1986 and excise duty of Rs. 1,04,586.17 and penalty of Rs. 3 lakhs was levied and demanded.

2. A letter was sent by the Central Excise Department to the appellant demanding a sum of Rs. 4,07,291.75 pursuant to the adjudication order made against respondent No. 4. The appellant in his letter to the Department contended that it had no liability to pay the excise dues of respondent No. 4. The Department not having acceded to it, a writ petition was filed in the High Court challengin