2001 (2) TMI 570 - Commission - Central Excise

Summary

Issues:
1. Timeliness of the application filed before the Settlement Commission.
2. Adjustment of duty amount deposited.
3. Interpretation of Sections 35F and 32PA of the Central Excise Act, 1944.

Analysis:

1. Timeliness of the application filed before the Settlement Commission:
The Applicant, represented by an Advocate, filed an application before the Settlement Commission after withdrawing an appeal from CEGAT against an order-in-original. The Advocate argued that although the withdrawal order was dated 4-9-2000, it was received on 16-9-2000. The application was filed on 16-10-2000, which seemingly exceeded the time limit prescribed under Section 32PA of the Central Excise Act, 1944. However, the Advocate contended that under the General Clauses Act, the last day of the prescribed period should be excluded when computing time. The Commission examined the proof of receiving the withdrawal order and concluded that the application was made within the 30-day period as required by law.

2. Adjustment of duty amount deposited:
The Applicant sought to adjust the duty amount of Rs. 4,41,537/- deposited following an order of the Hon'ble CEGAT. The Commission reviewed the application, reports from the Revenue, and the hearing records. It was noted that the duty liability was ordered to be adjusted against the deposited amount in compliance with the provisions of Section 32F(3) of the Central Excise Act, 1944.

3. Interpretation of Sections 35F and 32PA of the Central Excise Act, 1944:
Section 35F of the Act mandates that pending an appeal, the duty demanded must be deposited unless undue hardship is proven. The Appellate Tribunal had directed the Appellants to deposit the duty amount within a specified period, failing which the appeal would be rejected. On the other hand, Section 32PA provides appellants before CEGAT the option to approach the Settlement Commission. The Commission clarified that the deposit made for hearing an appeal does not negate the right to approach the Settlement Commission. The Commission emphasized that the day of the event triggering the application deadline should be excluded when calculating the time limit, as per the General Clauses Act.

In conclusion, the Commission allowed the application to proceed, accepted the request for adjusting the duty amount deposited, and highlighted the relevant provisions for all concerned parties to take note of, ensuring compliance with the Central Excise Act, 1944.