2013 (10) TMI 1422 - HC - Central Excise

Summary

Issues involved: Calculation of Central Excise duty, rejection of petitioner's application, interpretation of Section 32H of the Central Excise Act, 1944.

Calculation of Central Excise duty: The petitioner, a registered company engaged in manufacturing Slurry Explosives and Detonating Fuses, received a show cause notice demanding Central Excise duty. The petitioner filed an application for settlement, which was approved with a duty payable of &8377;90,66,563 and a penalty of &8377;3,80,000. Subsequently, the petitioner claimed a lower tax liability of &8377;65,62,817 due to a departmental mistake in calculation. The respondent rejected this claim citing Section 32H of the Act, preventing reopening of completed proceedings post-1-6-2007.

Rejection of petitioner's application: The respondent rejected the petitioner's claim for lower tax liability, stating that they were precluded from reopening completed proceedings after a certain date as per Section 32H of the Act. The petitioner challenged this rejection through a writ petition.

Interpretation of Section 32H of the Act: The Court acknowledged a mistake in the Department's calculation of duty, particularly regarding the value of goods cleared on specific dates. Despite the technical preclusion under Section 32H, the Court directed reconsideration of the issue based on the counter affidavit's contents, emphasizing the need for a fresh enquiry and decision by the respondent after hearing the petitioner.

Conclusion: The Court set aside the previous order and directed the respondent to review the petitioner's application, investigate the objections raised, and issue a new decision in compliance with the law after providing the petitioner with a hearing opportunity. The writ petition was disposed of without costs, and any related pending petitions were to be closed.