2003 (8) TMI 401 - Commission - Central Excise

Settlement Commission - Admission of application - Words and phrases - Levy, assessment and collection

Summary

Issues Involved:
1. Legality of the Settlement Application under Section 32E of the Central Excise Act, 1944.
2. Definition and interpretation of "case" under Section 31(c) of the Central Excise Act, 1944.
3. Validity of the applicant's claim regarding pending proceedings for recovery of duty.
4. Applicability of judicial precedents cited by the applicant.

Detailed Analysis:

1. Legality of the Settlement Application under Section 32E of the Central Excise Act, 1944:
The applicant, engaged in manufacturing Terry Towels of Cotton and registered as an Export-Oriented Unit (EOU), sought settlement for recovery/collection proceedings. The application was filed under Section 32E of the Central Excise Act, 1944, which allows an assessee to apply for settlement of cases involving undisclosed duty liability. However, the Commission noted that the duty amount had already been confirmed by the Commissioner, CEGAT, and the Supreme Court, thus attaining finality. Consequently, there was no pending dispute regarding the levy and assessment of duty for settlement.

2. Definition and Interpretation of "Case" under Section 31(c) of the Central Excise Act, 1944:
Section 31(c) defines "case" as any proceeding for the levy, assessment, and collection of excise duty or any appeal or revision connected to such proceedings. The Commission emphasized that the entire process from levy to collection must be considered as a whole. The applicant's argument that recovery proceedings fall within this definition was rejected. The Commission clarified that "case" involves all three functions-levy, assessment, and collection-taken together, not in isolation.

3. Validity of the Applicant's Claim Regarding Pending Proceedings for Recovery of Duty:
The applicant contended that since recovery proceedings were initiated, the application fell within the meaning of "case" under Section 31(c). The Commission disagreed, stating that recovery follows the assessment and collection stages. The Commission held that treating recovery proceedings as pending proceedings for levy and assessment would prevent any order from reaching finality. The application was seen as an attempt to seek waiver of penalty and interest, which had already been confirmed by the Supreme Court.

4. Applicability of Judicial Precedents Cited by the Applicant:
The applicant relied on various judgments to support their contention. The Commission examined these judgments and found them inapplicable to the present context. The judgments were related to different statutes and contexts, and the principles laid down could not be applied to the current case. The Commission highlighted that statutory words must be understood in their specific context and that the cited judgments did not support the applicant's interpretation.

Conclusion:
The Commission concluded that the application did not involve any dispute related to the levy and assessment of Central Excise Duty and contained no fresh disclosure requiring settlement. The proceedings pertained solely to the recovery of duty already assessed and confirmed. Therefore, the application did not meet the definition of "case" under Section 31(c) and could not be allowed to proceed. Consequently, the application was rejected under Section 32F(1) of the Central Excise Act, 1944.