Settlement Commission — Procedure for dealing with applications for settlement of cases - Central Excise - Standing Order No. 2/2001

Government of India (Department of Revenue) Customs Central Excise Settlement Commission Subject : Customs Central Excise Settlement Commission procedure for dealing with applications for settlement of cases. In exercise of the powers conferred under Section 32-I(4) of the Central Excise Act, 1944 read with Clause 10 of the Customs Central Excise Settlement Commission Procedure, 1999, the following instructions are issued to regulate the procedure for dealing with applications received by Benches of the Commission for settlement of cases. 1. A public notice is to be issued by all the Benches requiring the applicant to submit the Annexure to the application containing particulars referred to in item No. 12 of the application in a sealed cover along with the application. 2. The Secretariat of the Commission shall receive, acknowledge and register any application that may be filed. It shall call for a report of the jurisdictional Commissioner in accordance with Section 32F (1), CE Act / Section 127C(1) , Customs Act. Where the case has been investigated by DGRI/DGAE a copy of the application will also be endorsed to DGRI/DGAE for information and to enable coordination with the jurisdictional Commissioner for necessary action. Thereafter it shall be put up to the Bench for fixing the date of hearing for admission. Where the application is incomplete, including cases of non-accompaniment of TR6 Challan evidencing payment of prescribed fees, the application is to be accepted. This is because of the specific provision in Section 32F (1), / Section 127C(1) according to which no application will be rejected unless an opportunity of being heard is granted to the applicant. The Secretariat will fill up the checklist and submit it to the Bench. The Commission (Bench) will point out the deficiencies if any to the applicant for rectification. 3. The Secretariat shall prepare and submit the folders, containing application along with its enclosures (excluding the sealed cover) and the report of the jurisdictional Commissioner, duly indexed and page numbered, to the Members of the Bench two days before the date of hearing. 4. On the Bench passing orders on admission of the application, the orders of the Commission shall be issued under attestation of the AO who shall ensure that the Commission s seal, which shall be kept in the personal custody of the AO, is affixed on each page of the order. The orders will be serially numbered. The final orders will be issued likewise. In case of miscellaneous application relating to admitted cases, the numbering will be in seriatim referring to the serial number of the admission order. 5. On the application being admitted, the Secretary will open the sealed cover and submit it to the Commission. A copy of the same will also be dispatched to the jurisdictional Commissioner and DGRI/DGAE as the investigating agency, along with the Commission s orders allowing the application to be proceeded with. The Bench may require relevant records to be called from the jurisdictional authorities for their examination in terms of Section 32F(6) . It is clarified that relevant records are distinct from case records and in case of SCN issued by the Department relevant records refer to the documents/ material relied upon for issuing the SCN. It has been decided that only relevant records be asked to be produced for examination by the Commission. The concerned jurisdictional Commissioner or the investigating agency as the case may be, on receipt of the requisition from Commissioner (Investigation) for submitting the relevant records, should arrange for dispatching the records to the Commission. The documents on receipt in the Commission will be in the safe custody of the Administrative Officer in the Commission till they are ordered to be returned by the Commission. Original records need not be insisted if the Department furnishes photocopies of the records duly certified and attested by the proper officer. In case of voluminous records, which are not easily transportable, officers from the Commission may be deputed for study of the documents for reporting to the Commission. After perusal of relevant records the Bench, if it is of the opinion that any further enquiry or investigation in the matter is necessary, it may direct the Commissioner (Investigation) to make or cause to be made such further enquiry or investigation and furnish a report on the matters covered by the application and any other matter relating to the case. It is clarified that any other matter relating to the case is to be read with reference to the directions of the Commission and relating to the case in question. There is no provision for Commissioner (Investigation) to conduct any suo-moto investigation. The investigation is to be conducted in the most convenient manner and the Commissioner (Investigation) should confine his report to the specific direction and scope given by the Commission. If in the course of the investigation any other matter relevant to the case is noticed and needs to be looked into, the Commissioner (Investigation) should seek further directions from the Commission for the proposed course of investigation. The record of proceedings, the direction given to the Commissioner (Investigation) by the Commission as well as a copy of the report of the Commissioner (Inv.) should be communicated to the applicant and the jurisdictional Commissioner so as to provide complete transparency. If the Applicant desires to have a copy of the report of the Commissioner (Investigation), he shall make a specific request as provided for in Section 32J CE Act / Section 127 G Customs Act . 6. If the jurisdictional Commissioner or the Applicant proposes to rely on any particular document/material, statement etc. at the time of admission hearing or at the time of final hearing as provided under Clause 6 of the CCESC Procedure, 1999, then a paper book is to be filed by him. 7. The final orders of settlement passed by a Bench shall be circulated to the other Benches. Where it is considered desirable to publish the orders of the Bench in journals, the Vice Chairman may bring to the notice of the Chairman for his approval, any order for circulation or publication. The principal Bench shall deal with its circulation or publication as the case may be in accordance with the orders of the Chairman. 8. The principal file in which the order of admission and final orders are passed shall be kept preserved for a period of eight years. The copies and folders for admission and for final hearing circulated to the Members etc. shall be destroyed after final orders are passed by the Commission.