2007 (1) TMI 193 - HC - Central Excise

Summary

Issues involved: Challenge to order refusing waiver of interest by Settlement Commission in a customs and central excise case.

Summary:
The petitioner, engaged in manufacturing parts for Railways, challenged the Settlement Commission's order refusing waiver of interest on duty amount. The petitioner admitted liability but sought immunity from interest and penalty. The Commission granted immunity from penalty but not interest, leading to the challenge. The respondents contended the petitioner cannot challenge only part of the order to delay payment. The High Court heard arguments from both sides and noted the non-speaking nature of the Commission's order. The petitioner's counsel cited precedents where full waiver of interest was granted in similar cases. The Court found merit in the petitioner's submissions, noting the lack of reasons for denying interest waiver. Citing a Bombay High Court case, the Court decided to remit the matter back to the Commission for reconsideration, considering the inconsistency in decisions and lack of reasoning in the present case. The Court allowed the writ petition, setting aside the Commission's order and directing the matter to be reconsidered for waiver of interest, asking the petitioner to appear before the Commission for further proceedings.