2003 (5) TMI 474 - Commission - Central Excise

Summary

Issues:
Settlement of proceedings initiated against M/s. P&C for undervaluation of pre-stressed concrete pipes to avail SSI benefits.

Analysis:
The case involved M/s. P&C, engaged in the manufacture of pre-stressed concrete pipes, accused of undervaluing pipes to remain within the SSI exemption limit for financial years 2000-2001 and 2001-2002. The notice alleged that M/s. P&C fabricated records and invoices to avail benefits, leading to a demand for duty amounting to Rs. 33,33,431, interest under Sec. 11AB, and penalties under various provisions of the Central Excise Act, 1944. Shri N. Kumarasamy, D.G.M. of M/s. P&C, was also asked to show cause for potential penalties. The applications for settlement were forwarded to the Commissioner of Central Excise, Salem, for comments, and a report was received confirming the satisfaction of admission conditions.

During the hearing, M/s. P&C admitted to manipulating records for SSI benefits and accepted the duty liability demanded in the notice. The Advocate representing M/s. P&C requested adjustments for the duty liability already paid and sought to utilize CENVAT credit to offset the remaining liability. The Superintendent of Central Excise confirmed the filing of quarterly returns by M/s. P&C after the case was detected but left the decision on CENVAT credit to the Bench's discretion. The Advocate submitted copies of returns and other relevant documents post-hearing.

The Bench reviewed the submissions, documents, and timelines, noting that although returns were not filed within the prescribed time limit, M/s. P&C had obtained a Registration Certificate and made necessary declarations well before the case detection. The Bench considered the compliance with SSI exemption requirements and the acceptance of duty liability, leading to the admission of both M/s. P&C's and Shri N. Kumarasamy's applications for settlement.

The Bench directed M/s. P&C to pay the balance of the admitted duty liability within 30 days and allowed the applications to proceed under the Central Excise Act, 1944. With the admission of the applications, the Bench acquired exclusive jurisdiction over the case, enabling it to perform the functions of any Central Excise officer for this matter.