2005 (8) TMI 609 - Commission - Central Excise

Summary

Issues:
- Application for settlement of proceedings initiated against the applicant.
- Classification dispute regarding Plant Growth Regulators/Micro Nutrients.
- Interpretation of Section 32E(1) of the Central Excise Act, 1944.
- Fulfillment of conditions under Section 32E by the applicant.
- Admissibility of cases involving classification disputes before the Settlement Commission.

Analysis:
The judgment pertains to an application filed by M/s. Aries Agrovet Industries Limited for the settlement of proceedings initiated against them by a Show Cause Notice issued by the Commissioner of Central Excise, Hyderabad Commissionerate. The applicant admitted to a total duty amount but contested the classification dispute related to Plant Growth Regulators/Micro Nutrients. The applicant argued that their activities did not amount to manufacturing and that they were willing to settle the duty on one item, Plantomycin, but not on the other item due to the classification dispute.

The Bench highlighted the provisions of the Central Excise Act, specifically the third proviso to Section 32E(1), which states that proceedings involving classification disputes cannot be submitted before the Settlement Commission for settlement. The applicant's advocate contended that the Settlement Commission had the authority to admit such cases, while the Revenue representative pointed out that the applicant had not fulfilled the conditions specified under Section 32E of the Act.

Upon careful examination of the case, the Bench found that the Show Cause Notice involved the classification of goods and the payment of Central Excise Duty. The applicant sought to settle the duty on one item but contested the classification issue on another. The Bench observed that the application did not seek complete settlement and involved the interpretation of classification of goods. Consequently, the application was rejected under Section 32F(1) of the Central Excise Act, as issues involving interpretation of classification cannot be brought before the Commission without addressing all other aspects of the case. Thus, the application was not allowed to proceed before the Settlement Commission.