2004 (4) TMI 379 - Commission - Central Excise

Summary

Issues:
Settlement Commission jurisdiction over penalty immunity applications.

Analysis:
The case involved applications filed before the Settlement Commission by the truck owner and driver seeking immunity from penalties imposed by the Additional Commissioner in a Central Excise duty evasion case. The main applicant, M/s. Advance Dyestuff Industries (ADI), had already settled their duty liability with the Commission. The applicants were co-noticees in the case against ADI. The applicants, being illiterate, approached the Commission seeking to set aside the penalties and release the truck unconditionally. The Revenue confirmed that appeals filed by the co-noticees were pending before the Commissioner (Appeals) for waiver of penalties and truck confiscation.

The Settlement Commission observed that the applicants did not meet the definition of an 'assessee' under the Central Excise Act, nor were they part of the proceeding related to levy, assessment, or collection of duty. They approached the Commission solely for immunity from penalties under Section 32K. The show cause notice was primarily addressed to ADI, who had already settled with the Commission. Since the main applicant's case was resolved, the applicants could not independently seek immunity without disclosing duty liability or being qualified as an 'assessee' with pending duty-related proceedings. Therefore, the Commission rejected the applications under Section 32F(1) of the Central Excise Act, 1944.

In conclusion, the Settlement Commission did not allow the applicants' immunity applications to proceed, as they did not meet the criteria of being an 'assessee' or having pending duty-related proceedings. The rejection was based on the applicants' lack of duty liability disclosure and their status as co-noticees in a case already settled by the main applicant with the Commission.