2018 (8) TMI 304 - AT - Central Excise

Validity of appeal before higher appellate forum - acceptance of liability and payment of same made - Waiver of SCN - appellant accepted his liability, waived SCN and thereafter, filed the appeal before Commissioner (Appeals) - Held that - Admittedly, the appellant waived the show cause notice and deposited the entire dues as envisaged by the provisions of section 11AC (1)(d) of Central Excise Act. On such deposits made by the appellant, the case was held to be concluded. It is not open to the assessee to re-start the proceedings by way of filing an appeal thereagainst - The entire purpose of the said section is to reduce litigation and wherever the assessee admits the duty liability and deposited the same along with interest, the said provision further grants him relief in terms of quantum of penalty. The appellant having adopted the said course, cannot be allowed to take U-turn and challenge the order before the Higher appellate forum. Appeal dismissed - decided against appellant.

Summary

Issues:
1. Admittance of liability and waiver of show cause notice under section 11AC (1)(d) of the Central Excise Act.
2. Rejection of appeal by Commissioner (Appeals) based on voluntary deposit of dues.
3. Legal scrutiny of settled issue and reopening of proceedings by the appellant.

Analysis:

1. The appellant admitted passing wrong cenvat credit to customers, leading to evasion of duty. They requested waiver of the Show cause notice under section 11AC (1)(d) by depositing duty, interest, and 15% penalty. The adjudicating authority accepted the request, closing the matter.

2. The appeal filed before the Commissioner (Appeals) was rejected. The Commissioner observed that once the appellant voluntarily settled the issue under section 11AC (1)(d), further legal challenge was not permissible. The appellant's voluntary deposit of dues led to the conclusion of the case, preventing reopening of proceedings.

3. The Tribunal noted that the appellant admitted duty liability, deposited the dues, and waived the show cause notice as per section 11AC (1)(d). The purpose of the provision is to reduce litigation, providing relief in penalty for admitting duty liability. The appellant's decision not to contest or reserve the right to appeal during deposit precludes challenging the order before a higher appellate forum.

In conclusion, the Tribunal found no grounds to interfere with the Commissioner (Appeals) order, rejecting the appeal. The appellant's voluntary settlement under section 11AC (1)(d) precludes reopening of proceedings or challenging the order on settled issues. The decision emphasizes the finality of voluntary settlements under the law, aiming to reduce litigation and provide relief in penalty for admitting duty liability.