2002 (10) TMI 554 - Commission - Central Excise

Summary

Issues: Settlement of duty liability, immunity from fine, penalty, interest, and prosecution.

Settlement of Duty Liability:
The case involved M/s. Nirma Ltd., accused of clandestinely removing glycerine without paying duty. The applicant admitted to the duty liability of Rs. 26,83,323, out of which Rs. 25,97,800 was already paid. The remaining balance was to be paid within 30 days. The Commission directed the Commissioner to confirm the receipt of the balance amount.

Immunity from Fine and Penalty:
The applicants were granted immunity from the imposition of fine and penalty. The Revenue argued against granting immunity, stating that the applicant had admitted the duty liability without contest. However, the Commission decided in favor of granting immunity.

Immunity from Interest:
The applicants were also granted immunity from payment of any interest. This decision was based on the applicant's full disclosure and cooperation throughout the proceedings.

Immunity from Prosecution:
The applicants were granted immunity from prosecution under the Central Excise Act, 1944, and the Indian Penal Code. This immunity covered any potential legal actions related to the case.

Validity of Settlement Order:
The settlement order specified that it would be void if obtained through fraud or misrepresentation of facts. This clause ensured the integrity of the settlement process and prevented any misuse of the granted immunities.

The detailed analysis of the judgment highlights the admission of duty liability, the grant of immunity from fine, penalty, interest, and prosecution, and the conditions ensuring the validity of the settlement order. The decision was based on the applicant's cooperation, full disclosure, and the terms outlined in Section 32F(7) of the Central Excise Act, 1944.