2017 (1) TMI 706 - HC - Central Excise

Principles of natural justice - respondent No. 4 has rejected its application for settlement before the Customs and Central Excise Settlement Commission, without granting any opportunity of hearing to the petitioner - Held that - the Settlement Commission is in agreement with the objections raised in the writ petition and if the petitioner so desires, the Commission may restore the earlier application which was filed in the office on 2-3-2016 or the petitioner may file a fresh application before the Settlement Commission - matter on remand.

Summary

Issues:
Challenge to rejection of application for settlement before Customs and Central Excise Settlement Commission without hearing.

Analysis:
The petitioner challenged the rejection of its application for settlement before the Customs and Central Excise Settlement Commission in the High Court. The rejection was based on the ground that the quantum of tax effect involved in the dispute was below the statutory limit, as stated by respondent No. 4. The petitioner contended that the disputed duty amount was significantly higher than the limit mentioned by the respondent. A notice of motion was issued, and a written statement on behalf of respondent No. 2 was filed in court, which was taken on record. Subsequently, a communication was produced by the respondents, indicating that the Settlement Commission agreed with the objections raised in the writ petition. The Commission offered to restore the earlier application or allow the petitioner to file a fresh application. As a result, the writ petition was disposed of, with the condition that the petitioner should file an application for restoration of the original application for hearing on merits promptly. If the restoration application is submitted, the original application will be decided by the Settlement Commission expeditiously in accordance with the law.