2022 (5) TMI 798 - HC - Central Excise

Non-appointment Member in the various Benches of the Settlement Commission - Section 32 of the Central Excise Act, 1944 - HELD THAT - The process of appointment of Chairman and one Member for the Principal Bench at Delhi and appointment of Vice-Chairman and one Member for the Additional Bench at Mumbai be completed within six weeks. The respondents are directed to examine the aspect of appointment of Vice-Chairman and other Members for the Benches at Chennai and Kolkata. We hope and expect the respondent/Government to act in time so that, at the end of one year, we are not faced with the same situation again, when the tenure of the new Appointees expires in terms of the decision communicated vide letter dated 29.04.2022 taken note of. List on 20th July, 2022.

Summary

Issues:
1. Non-appointment of 'Member' in various Benches of the Settlement Commission under Section 32 of the Central Excise Act, 1944.
2. Lack of Quorum in the Benches of the Customs, Central Excise, and Service Tax Settlement Commission.
3. Appointment process for Chairman and Members in the Principal Bench at Delhi and the Additional Bench at Mumbai.
4. Absence of information regarding the Benches in Kolkata and Chennai.
5. Directions for completing the appointment process within six weeks and examining appointments for the Benches in Chennai and Kolkata.

Analysis:
1. The petition raised concerns about the non-appointment of 'Member' in the Benches of the Settlement Commission as per Section 32 of the Central Excise Act, 1944. The Court noted the lack of Quorum in the Customs, Central Excise, and Service Tax Settlement Commission Benches since 08.12.2019.
2. The petitioner submitted a communication from the Ministry of Finance regarding the decision to appoint the Chairman and one Member in the Principal Bench at Delhi and the Vice-Chairman and one Member in the Additional Bench at Mumbai for a year, with a review after that period. However, there was no mention of the Benches in Kolkata and Chennai in the communications.
3. The Court directed the completion of the appointment process for the Principal Bench at Delhi and the Additional Bench at Mumbai within six weeks. Furthermore, the respondents were instructed to consider the appointment of Vice-Chairman and other Members for the Benches in Chennai and Kolkata to avoid a similar situation after one year.
4. A further status report on the appointment process was ordered to be filed before the next hearing scheduled for 20th July 2022. The Court emphasized the importance of timely action by the respondent/Government to prevent future delays in appointments and ensure the proper functioning of the Settlement Commission Benches.