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Home Case Index All Cases Central Excise Central Excise + Commission Central Excise - 2002 (11) TMI Commission This

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2002 (11) TMI 411 - Commission - Central Excise

Issues:
Evasion of Central Excise duty using parallel set of invoices, confiscation of goods and raw materials, imposition of penalty, recovery of interest, non-compliance with Settlement Commission's directions, delayed payment of admitted duty liability, request for instalment facility, calculation of interest on delayed payment, absence of Revenue during final hearing, condonation of delay in payment, granting of immunities sought by the applicant.

Analysis:
The judgment involves a case where the applicant, engaged in the manufacture of M.S. CTD Bars, evaded Central Excise duty by using parallel invoices and dispatching goods in the name of a trading firm. Central Excise Officers conducted searches leading to a show cause notice demanding duty recovery, confiscation of goods and raw materials, penalty imposition, and interest recovery. The applicant and co-applicants filed applications before the Settlement Commission, which directed payment of admitted duty liability. However, the applicant requested instalment facility, leading to delays in payment despite Commission's directions.

During the final hearing, the applicant disclosed payments made towards the duty liability but failed to comply with the Commission's timelines due to external factors like riots. The Commission expressed displeasure over Revenue's absence and non-communication. Despite the applicant's admission of the duty liability, the Commission imposed a penalty for delayed payment, considering financial constraints but deeming the delay as serious. The Commission outlined terms of settlement under Section 32F of the Central Excise Act, including duty payment confirmation, penalty imposition, and interest considerations.

The Commission granted immunity from prosecution under the Central Excise Act and the Indian Penal Code related to the case. The settlement order specified the consequences of fraud or misrepresentation. The judgment highlighted the importance of compliance with Commission's directions, timely payments, and cooperation during proceedings. The detailed analysis covered the applicant's payment history, communication with Revenue, and the Commission's decision on duty liability, penalty, interest, and prosecution immunity. The judgment emphasized the significance of following settlement terms and ensuring transparency in dealings with the Commission.

 

 

 

 

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