2015 (11) TMI 1163 - HC - Central Excise

Imposition of penalty - Concealment of particulars - Held that - If there is any concealment in that application and a penalty has been imposed by the Settlement Commission on the ground of such concealment, then a second application before the Settlement Commission is barred, in my interpretation of Section 32-O(i) of the said Act - The order of the Settlement Commission does not specify whether this kind of a penalty was imposed on the writ petitioner. Just because a penalty is imposed on a show-cause notice the writ petitioner s application before the Commission was not entertained. - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
1. Interpretation of Section 32-O(i) of the Central Excise Act by the Settlement Commission.
2. Whether a penalty imposed on M/s. Rohit Ferro Tech Limited bars them from approaching the Settlement Commission in a second case.
3. Application of Section 32E for settlement and the consequences of concealment in the application.
4. Reconsideration of the Settlement Commission's order dated 28th March 2014.

Analysis:
The judgment addresses the incorrect interpretation of Section 32-O(i) of the Central Excise Act by the Settlement Commission. It points out that the Commission failed to understand that a penalty imposed on M/s. Rohit Ferro Tech Limited did not prevent them from making a second application unless the penalty was inflicted on them due to concealment of particulars of duty liability in the application under Section 32E. The Court emphasizes that Section 32E allows an assessee to apply for settlement after the issuance of a show-cause notice but before adjudication, requiring full and true disclosure of duty liability. If a penalty is imposed based on concealment in the application, a second application is barred under Section 32-O(i).

Furthermore, the judgment highlights that the Settlement Commission's order did not specify whether a penalty was imposed on the writ petitioner. It clarifies that just because a penalty was imposed on a show-cause notice, it should not prevent the writ petitioner's application from being entertained by the Commission. The Court directs the Settlement Commission to reconsider its order in light of these observations. If it is found that no penalty was imposed on the writ petitioner for concealing particulars of duty liability in the Section 32E application, the Commission is instructed to proceed with considering their case on its merits.

In conclusion, the judgment disposes of the writ application and instructs the Settlement Commission to review its order dated 28th March 2014. It emphasizes the importance of correctly applying the provisions of the Central Excise Act, particularly regarding penalties and the consequences of concealment in settlement applications. The Court's decision aims to ensure fair treatment and proper consideration of cases before the Settlement Commission.