Liability under Act to be first charge
Section 11E of the Central Excise Act, 1944 deals with liability under Act to be first charge. Notwithstanding anything to the contrary contained in any Central Act or State Act, any amount of duty, penalty, interest, or any other sum payable by an assessee or any other person under this Act or the rules made thereunder shall, save as otherwise provided in Section 529A of the Companies Act, 1 The Act came into force on 28 Feb 1944.
1[11E. Liability under Act to be first charge.-- Notwithstanding anything to the contrary contained in any Central Act or State Act, any amount of duty, penalty, interest, or any other sum payable by an assessee or any other person under this Act or the rules made thereunder shall, save as otherwise provided in Section 529A of the Companies Act, 1956 (1 of 1956), the Recovery of Debts Due to Banks and the Financial Institutions Act, 1993 (51 of 1993) 1[the Securitisation and Reconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002 (54 of 2002) and the Insolvency and Bankruptcy Code, 2016], be the first charge on the property of the assessee or the person, as the case may be.]
Section 11E, The Central Excise Act, 1944 (Act 1 of 1944).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
-
Punjab National Bank vs Union of India Ministry of Finance/revenue Thr. Its Secretary
Court's Decision & Legal Precedent
When a statutory rule is omitted from the statute books and replaced by a new rule that uses narrower language or does not provide for the same power, pending proceedings initiated under the omitted rule will lapse unless there is an applicable saving clause in the statute or the new rule. Section 6 of the General Clauses Act applies only to repeal of Central Acts or Regulations, not to omission of rules. Section 38A of the Central Excise Act does not save proceedings when the legislature manifestly does not intend to revive the power, as evidenced by the fact that the power is not re-introduced in subsequent rules and the language is narrowed from 'anything' to 'goods'. Therefore, confiscation orders passed under an omitted rule are without jurisdiction and void. Additionally, in the absence of a specific statutory provision providing first charge to the government, secured creditors under SARFAESI Act have priority over government debts, and SARFAESI Act provisions override all other laws including the Central Excise Act.
On this section: Provides that excise liabilities shall be first charge on assessee's property, but is subject to SARFAESI Act, 2002; Court held SARFAESI Act overrides this provision
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 11E
What have the courts held on Section 11E of the Central Excise Act?
Punjab National Bank vs Union of India Ministry of Finance/revenue Thr. Its Secretary (24 Feb 2022) is the leading judgment on this section among those set out below: Provides that excise liabilities shall be first charge on assessee's property, but is subject to SARFAESI Act, 2002; Court held SARFAESI Act overrides this provision.
How do I find court cases under Section 11E of the Central Excise Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Central Excise Act 1944 11E, section 11E Central Excise Act 1944, section 11E of the Central Excise Act. People searching for it also type section 11e of central excise act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Punjab National Bank vs Union of India Ministry of Finance/revenue Thr. Its Secretary (24 Feb 2022).
When did Section 11E of the Central Excise Act come into force?
Section 11E of the Central Excise Act, cited as Central Excise Act 1944 11E, came into force on 28 Feb 1944, having been enacted on 24 Feb 1944. It is in force as at the date shown on this page.
Other sections of this Act
- 4. Valuation of excisable goods for purposes of charging of duty of excise1751 words
- 11A. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded1442 words
- 11B. Claim for refund of duty and interest, if any, paid on such duty1342 words
- 35B. Appeals to the Appellate Tribunal1302 words
- 32F. Procedure on receipt of an application under Section 32-E1167 words
- 11AC. Penalty for short-levy or non-levy of duty in certain cases1093 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 17 Oct 2026. This page is not a substitute for legal advice.