2002 (7) TMI 713 - Commission - Central Excise

Summary

Issues:
Settlement application filed by M/s. K.B. Steels for under-valuation of goods leading to differential Central Excise duty, confiscation of goods, penalty, and interest.

Analysis:
The case involved M/s. K.B. Steels, a manufacturing unit holding Central Excise Registration, and M/s. Bajaj Steel Co., a trading concern owned by the same proprietor. The applicant failed to declare the relationship between the two concerns in the marketing pattern declaration, despite common identity under various tax acts. It was revealed that M/s. Bajaj Steel Co. sold goods at a higher price than procured from M/s. K.B. Steels, leading to under-valuation. A demand notice was issued for recovery of differential Central Excise duty, confiscation of goods, penalty, and interest.

The applicant filed a settlement application accepting the duty liability and stating that the demand notice was pending adjudication. The Settlement Commission allowed the application to proceed, directing payment of the admitted amount. The applicant complied by debiting the duty amount in their Cenvat account. At the final hearing, the applicant's consultant admitted the entire amount and requested immunity from interest, fine, and penalty.

The Settlement Commission reviewed the case, noting the applicant's cooperation and full disclosure of duty liability. It settled the duty amount, waived fine and penalty, granted immunity from interest, and provided protection from prosecution. The terms of settlement were passed under the relevant provisions of the Central Excise Act, 1944. The settlement order would be void if obtained through fraud or misrepresentation.