2001 (4) TMI 868 - Commission - Central Excise

Summary

Issues: Settlement of duty liability, immunity from prosecution, waiver of interest liability

Settlement of Duty Liability:
The judgment pertains to the settlement applications filed by a firm engaged in manufacturing automobile components. The Central Excise Department initiated investigations regarding the availed credits, leading to a Show Cause Notice proposing denial of Modvat credit. The applicants admitted additional duty liability and requested an amendment, accepting the full demanded amount. The Commission admitted the applications and the applicants paid the demanded amount. During final disposal hearings, the applicants sought immunity from prosecution and interest liability waiver. The Revenue argued for penalties due to alleged deliberate wrong credits. The Commission, considering the admissions and payments, granted immunity from prosecution under Section 32K(1) of the Act.

Immunity from Prosecution:
The applicants cooperated with the Commission, admitted full duty liability, and paid the demanded amount. The Commission found their request for immunity covered under Section 32K(1) of the Act. Thus, the three applicants were granted immunity from prosecution for any offense under the Central Excise Act, 1944, and from penal liability under the Act and related Rules concerning the case covered by their applications.

Waiver of Interest Liability:
Regarding the waiver of interest liability, the Commission noted that the applicants had wrongly availed duty credits with the intent to defraud the Revenue. They adjusted their duty liability on finished products against these inadmissible credits. The Commission decided that some interest liability should be imposed under the Act's provisions. Simple interest at 10% per annum was ordered on the inadmissible credits availed by the applicants. The case was settled by accepting the paid duty liability along with the prescribed interest. The applicants were directed to calculate and inform the Commission of the interest amount within two weeks. The interest was to be paid within 30 days of receiving the order.

Conclusion:
The judgment concludes by ordering the settlement of the case with the payment of the admitted duty liability and prescribed interest. The applicants were granted immunity from prosecution and penal liability for the offenses related to the case. The settlement terms were subject to being void if obtained through fraud or misrepresentation. All parties concerned were advised to adhere to the provisions of the Act regarding the immunity granted in the order.