2005 (3) TMI 645 - Commission - Central Excise

Summary

Issues involved:
Settlement application under two Show Cause Notices (SCN) dated 29-9-98 & 1-6-99, admissibility of disclosure for specific periods, consideration of entire SCN for settlement, duty liability, immunity from interest, penalty, and prosecution.

Analysis:

1. Admissibility of Disclosure for Specific Periods:
The applicant, engaged in manufacturing MS Ingots, filed a settlement application for SCNs issued by the Asstt. Commissioner, covering different periods. The Bench admitted the application only for the period 15-1-99 to 31-3-99, as the disclosure was considered fresh only for this period based on previous orders. The Bench directed the adjustment of the deposited amount towards the duty liability for this specific period.

2. Consideration of Entire SCN for Settlement:
During the final hearing, the issue arose whether the entire SCN should be considered for settlement or only a part of it. The applicant's counsel referred to past decisions and requested settlement for the entire case, emphasizing that duty liability had been admitted and paid. The Revenue representative did not object to settling the entire proceedings under the SCN dated 1-6-99, covering the period 1-11-98 to 31-3-99.

3. Immunity from Interest, Penalty, and Prosecution:
The Bench considered the applicant's cooperation, admission of duty liability, and payment history. It granted immunity from penalty and prosecution but decided not to grant total immunity from interest due to delayed payment of the duty amount. The applicant was directed to pay the balance amount within 30 days and simple interest at 10% p.a. on the settled duty amount from a specified date.

4. Final Settlement and Conditions:
The Bench settled the matter under Section 32F(7) of the Act, specifying the duty amount, balance payment, interest calculation, and compliance requirements. Immunity from interest above 10% p.a. was granted, along with penalties and prosecution. The settlement would be void if obtained through fraud or misrepresentation, as per Section 32F(9) of the Act.

5. Grant of Immunities and Compliance:
The immunities granted were in accordance with Section 32K(1) of the Act, subject to the provisions outlined in sub-sections (2) and (3) of Section 32K. The applicant was directed to comply with the payment terms and report back to both the Bench and the Revenue within specified timelines.

This detailed analysis covers the issues of disclosure admissibility, consideration of the entire SCN for settlement, grant of immunities, and compliance requirements as outlined in the legal judgment of the Settlement Commission for Customs and Central Excise.