2005 (2) TMI 755 - Commission - Central Excise

Summary

Issues: Settlement of case arising from Show Cause Notice regarding fraudulent Modvat credit availed by the applicant.

Analysis:
1. Background: The case involved M/s. Mahalakshmi Sugar Mills Co. Ltd. and others jointly filing an application for settlement regarding the Show Cause Notice issued by the Additional Commissioner, Central Excise, Meerut-I, for fraudulent Modvat credit availed on forged invoices.

2. Admission Order: The Commission admitted the case and directed the applicant to deposit the admitted duty liability within 30 days, which was complied with. The Revenue was to verify the invoices related to the Modvat credit availed.

3. Final Hearing: During the final hearing, the applicant's advocate confirmed compliance with the Commission's directions. The advocate argued for immunity from penalty and interest, citing discrepancies in the demand of duty and penalties imposed.

4. Verification Discrepancies: The Revenue representative highlighted discrepancies in verifying the payment of duty for the capital goods on which Modvat credit was availed. The applicant provided details but the Revenue claimed lack of evidence.

5. Commission's Decision: After considering all submissions and documents, the Commission found that the major duty liability was settled, except for a minor amount where discrepancies existed in verifying the capital goods received. The Commission granted immunity from interest, penalty, and prosecution to the applicant and co-applicants under Section 32F(7) of the Act.

6. Immunities Granted: The Commission emphasized that the immunities could be withdrawn if any material particulars were withheld or false evidence was provided. The attention of all concerned was drawn to the provisions of Section 32K of the Act regarding the granted immunities.