2002 (5) TMI 295 - Commission - Central Excise

Issues Involved:
1. Duty evasion and liability.
2. Admission of the application for settlement.
3. Payment of duty in installments due to financial hardship.
4. Reconciliation of duty amount and calculation mistakes.
5. Immunity from penalties, interest, and prosecution.

Detailed Analysis:

1. Duty Evasion and Liability:
The Applicant, engaged in the manufacture of Bright Steel Bars, was found to have evaded a total duty of Rs. 63,05,267.84 during the period July 1995 to April 2000. The evasion was discovered through the use of duplicate invoices for selling goods to TELCO, Pune, and other parties without paying the mentioned duties or maintaining any Central Excise records.

2. Admission of the Application for Settlement:
Initially, the Applicant admitted a duty liability of Rs. 17.25 lakhs, which was later amended to Rs. 60,22,912.65 after instructions from the Commission. The Commission accepted the application for settlement under Section 32E of the Central Excise Act, 1944, considering the Applicant's financial condition and willingness to pay the full duty amount.

3. Payment of Duty in Installments Due to Financial Hardship:
The Applicant requested to pay the duty in twelve equal monthly installments due to financial hardships. The Commission allowed the Applicant to pay the accepted duty amount in eight equal monthly installments, with the first installment due within 30 days from the order date.

4. Reconciliation of Duty Amount and Calculation Mistakes:
The Applicant and the Revenue were directed to reconcile the duty amount, considering calculation mistakes and returned goods from TELCO. The correct amount of duty payable was determined to be Rs. 60,54,828.00. The Applicant was required to deposit the balance amount and interest as calculated.

5. Immunity from Penalties, Interest, and Prosecution:
The Applicant requested immunity from penalties, interest, and prosecution, citing full disclosure and cooperation. The Commission granted immunity from prosecution and penalties but ordered the Applicant to pay interest at 10% per annum from the date of clearance to the date of payment of the accepted duty amount.

Final Orders:
1. The correct duty amount payable is Rs. 60,54,828.00, with the Applicant required to pay the balance of Rs. 31,915.00 within 30 days.
2. The Applicant shall pay interest amounting to Rs. 16,89,007.94 within 30 days.
3. The Commissioner of Central Excise, Jamshedpur, shall issue a certificate of payment for the duty amount to facilitate Modvat credit examination.
4. The Applicant is granted immunity from prosecution, penalties, and fines under the Central Excise Act and rules.
5. The settlement shall be void if obtained by fraud or misrepresentation.

The Commission emphasized the importance of compliance with the order and the legal consequences of any failure to do so.

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