2001 (7) TMI 474 - Commission - Central Excise

Summary

Issues:
1. Application for settlement of excise duty evasion filed by a company engaged in the manufacture of chewing tobacco.
2. Dispute over the amount of duty demanded by the Directorate General of Anti-Evasion.
3. Request for waiver of penalty, interest, and immunity from prosecution.
4. Failure of the Revenue to submit objections within the stipulated time frame.

Analysis:
1. The judgment pertains to an application for settlement filed by a company involved in the manufacture of chewing tobacco, which was found to be removing finished products without proper documentation and payment of central excise duty. The Directorate General of Anti-Evasion issued a show cause notice (SCN) demanding duty payment of Rs. 1,12,98,671/- along with penalties under various sections of the Central Excise Act, 1944. The company approached the Settlement Commission seeking to settle the case by paying a reduced duty amount of Rs. 81,23,921/-, of which they had already deposited Rs. 65,00,000/-, and requested waiver of penalties, interest, and immunity from prosecution.

2. During the hearing, the company's advocates reiterated their willingness to pay the admitted duty liability and challenged the additional duty amount of Rs. 31,67,750/- demanded by the Revenue. They argued that the Revenue's claim was not substantiated by sufficient evidence, as it was based solely on incomplete transporter documents lacking essential details. The company contended that being a registered entity regularly paying duty, their case fell under Section 32E(1) for admission before the Commission.

3. The Settlement Commission, after hearing the arguments and reviewing the records, noted the Revenue's failure to submit objections within the allotted time frame. Consequently, the Commission admitted the case and directed the company to pay the balance duty amount of Rs. 16,23,921/- within 30 days. The company was also instructed to provide evidence of payment and submit detailed explanations contesting the further duty demand of Rs. 31,67,750/-, as well as justifications for not imposing penalties, interest, and other proposed actions outlined in the SCN. Both parties were given a deadline to exchange submissions and comments, with the Revenue ordered to investigate the disputed duty amount and submit a report within a month.

This judgment highlights the procedural aspects of excise duty settlement before the Settlement Commission, emphasizing the importance of evidence, timely submissions, and detailed justifications in resolving disputes related to duty liabilities and penalties.