2002 (1) TMI 465 - Commission - Central Excise

Summary

Issues:
1. Admissibility of the case before the Settlement Commission.
2. Interpretation of Section 32(O) of the Central Excise Act, 1944.

Admissibility of the Case:
The Applicant, along with co-noticees, filed an application before the Settlement Commission for the second time. In the previous application, they did not make a full and true disclosure, leading to its rejection. The current application involves admitting a duty liability of Rs. 8,24,07,911/- for the entire period mentioned in the show cause notice. The Revenue, although the initial duty demand was higher, does not object to admitting the case due to the Applicant's acceptance of a substantial duty liability. The Commission reviewed the submissions of both parties and found the application admissible based on the satisfaction of Section 32E requirements.

Interpretation of Section 32(O) of the Central Excise Act, 1944:
The Commission examined the applicability of Section 32(O) to the case. Classes (i) and (ii) of Section 32(O) were deemed inapplicable as there was no previous settlement order or conviction. Class (iii) was also not relevant as the case was not sent back to the Central Excise Officer. The Revenue had no objection to the admission of the case, and the Applicant's admission of a reduced duty liability for the entire period allowed for the case to be entertained. Consequently, the Commission ordered the case to proceed under Section 32F(1) of the Central Excise Act, 1944.

In conclusion, the Settlement Commission allowed the application to proceed, with the Applicant admitting a duty liability of Rs. 8,24,07,911/-. An amount already paid by the Applicant was to be adjusted, and the balance was to be paid within 30 days. The Commission emphasized compliance with Section 32-I of the Central Excise Act, 1944 and directed all concerned parties to be informed accordingly.