2004 (12) TMI 521 - Commission - Central Excise

Summary

Issues:
Admission hearing in a case involving duty liability, corrigendum to show cause notice, application under Section 32E of the Central Excise Act, 1944 before the Settlement Commission, acceptance of duty liability, objections by Revenue, availability of facts at the time of issuing show cause notice, input-output ratio, suppression of production, evidence required for corroboration, conditions under Section 32E, adjustment of paid amount, final hearing requirements.

Analysis:
The judgment pertains to an admission hearing concerning duty liability of an applicant and co-applicants based on investigations revealing shortages and clandestine removal of goods without payment of Central Excise duty. A Show Cause Notice was issued demanding duty and penalties, followed by an addendum alleging suppression of production and additional duty liability. The applicant filed an application under Section 32E of the Central Excise Act, 1944 before the Settlement Commission, admitting the duty liability demanded in the original notice.

The Revenue contended that the addendum was part of the original notice, demanding a total duty amount. The Bench examined the case records and submissions. It noted that the facts supporting the increased duty liability in the addendum were available to the Revenue when the original notice was issued. The Revenue had not provided additional evidence to support the alleged suppression of production. The Bench allowed the case to proceed under Section 32F(1), adjusting the amount already paid by the applicant against the admitted duty liability.

The judgment emphasized the need for a full debate on the consumption of furnace oil, the basis for the corrigendum, during the final hearing. It highlighted that the applicant met the conditions under Section 32E, allowing the case to proceed. The judgment also reminded all concerned parties of the provisions under Section 32-I of the Central Excise Act, 1944, and informed them about the decision.

In conclusion, the Settlement Commission allowed the case to proceed, considering the available evidence and the applicant's admission of duty liability. The judgment underscored the importance of providing corroborative evidence and conducting a detailed discussion on contentious issues during the final hearing. The decision ensured that the applicant's payment was adjusted against the admitted duty liability, following the legal procedures under the Central Excise Act, 1944.