2007 (8) TMI 553 - Commission - Central Excise

Summary

Issues: Settlement of Central Excise duty liability, Immunities from fine, penalty, and prosecution

Settlement of Central Excise Duty Liability:
The judgment involves the settlement of a case under Section 32 E(1) of the Central Excise Act, 1944. The applicant, engaged in manufacturing M.S. Round Bars, was found to have illicitly removed goods without accounting for them in their records or paying central excise duty. A Show Cause Notice (SCN) was issued, demanding duty payment of Rs. 3,34,537. The applicant admitted the entire duty liability and deposited the amount before the issuance of the SCN. During the admission hearing, the applicant's representative explained that the default occurred due to oversight, with no malafide intention to evade duty. The Revenue had no objection to the admission but opposed granting immunities due to alleged deliberate evasion. The Settlement Commission observed that the applicant fulfilled all conditions and allowed the case to proceed under Section 32 F(1) of the Act. The duty amount was settled at Rs. 3,34,537, already paid by the applicant, and the case was settled under Section 32 F(7) with terms and conditions specified.

Immunities from Fine, Penalty, and Prosecution:
Regarding immunities, the Bench granted full immunity from penalty considering the prompt payment of duty and cooperation during proceedings. Immunity from prosecution under the Central Excise Act, 1944, was also granted to the applicants. These immunities were provided under Section 32K(1) of the Act. The order of settlement would be void if obtained by fraud or misrepresentation of facts, as per Section 32F(9) of the Act. All concerned parties were duly informed of the settlement terms and conditions, including the provisions of sub-sections (2) and (3) of Section 32K of the Act.