2006 (5) TMI 286 - Commission - Central Excise

Summary

Issues:
Application for settlement of additional duty liability, immunity from penalty, and waiver of interest under Section 32E of the Central Excise Act, 1944.

Detailed Analysis:

Issue 1: Application for Settlement of Additional Duty Liability
The applicant company, engaged in manufacturing Refractory Bricks materials, defaulted in paying duty amounting to Rs. 9,67,200/- for removal of excisable goods. The Deputy Commissioner forfeited the facility of payment in installments and directed payment on consignment basis. The applicant failed to comply, paying duty from Cenvat account instead of PLA, leading to a show-cause notice for duty of Rs. 19,29,928/-, interest, and penalty. The Order-in-original confirmed duty, interest, and penalty of Rs. 10,000/-. The applicant admitted fault and filed for settlement.

Issue 2: Compliance with Legal Provisions
The Respondent Commissioner reported that the applicant violated deeming provisions by debiting duty from Cenvat account instead of PLA, citing a similar case. The applicant argued financial crisis due to being a sick industry, regular filing of returns, and pending appeal. Both parties confirmed the case pending before the appellate authority. The Commission found the applicant fulfilled conditions for admission, including full disclosure and payment of duty in PLA, admitting the application.

Issue 3: Admission and Jurisdiction of Settlement Commission
The Commission admitted the application as the duty liability exceeded two lakh rupees, the case was pending before the appellate authority, and the applicant made full disclosure. With the admission, the Commission acquired exclusive jurisdiction under Section 32-I of the Central Excise Act, 1944 for the instant case. No appropriation order was passed as the duty amount was already deposited in PLA entries, to be decided in final hearing.

In conclusion, the Settlement Commission admitted the application for settlement of additional duty liability, immunity from penalty, and waiver of interest under Section 32E of the Central Excise Act, 1944, based on the applicant's compliance with legal provisions, pending appeal, and full disclosure. The Commission acquired exclusive jurisdiction for the case and deferred the decision on appropriation pending final hearing.