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TMI Blog2001 (3) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... int filed and process if any issued by the Court. The Commission also had informed the Applicant that as per the provisions of Section 32K immunity of any kind as laid down in that Section is not available to the Applicants and in that case whether the Applicant wanted to proceed with the application or not. The learned Advocate submitted that he wanted to proceed with the application because Section 32K gives a clear indication that there is no bar for an application to be admitted in the Settlement Commission even if a criminal case has been filed against the Applicant in a Court of law. Section 32K only envisages that if prosecution proceedings have been instituted before the date of receipt of application under Section 32E then the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission has gone through the applications filed by the Applicant, the reports received from the Revenue and heard the Applicant and the Revenue. It is seen that there was a criminal complaint filed in the Hon ble Court against the Applicants in the Court of law. 5. In the above view of the matter the Commission deliberated as to the admissibility of the application filed by the Applicant. The Commission noticed that the second proviso to Section 32E of Central Excise Act, 1944 mentions that no application shall be entertained by the Settlement Commission under sub-section (1) of Section 32E in cases which are pending with the Appellate Tribunal or any Court. Sub-section (1) of Section 32E of Central Excise Act, 1944 inter alia provides th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under Section 32E, yet the application can be entertained by the Settlement Commission. 7. A reading of Section 32K of Central Excise Act, 1944 would support the above arguments. Section 32K of Central Excise Act, 1944 gives the power to the Settlement Commission to grant immunity from prosecution for any offence under Central Excise Act or the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in force and immunity either wholly or in part from the imposition of any penalty, fine and interest under this Act (Central Excise Act, 1944), with respect to the case covered by the settlement. This granting of immunity however, is left to the discretion of the Settlement Commission depending upon certain factors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect Tax law was considered by the Hon ble Madras High Court in the case of Kothari and Sons and Others v. N. Subramanian, Income-Tax Officer, Central Circle XIII reported in [1992 (196) ITR 082]. In the said decision the Hon ble High Court has referred to the following decisions : (7) CIT v. B.N. Bhattachargee - (1979) 118 ITR 461 (S.C.) (8) Harbans Singh v. Union of India - (1998) 171 ITR 23 (9) R.I. Chadha v. ITO - (1987) 168 ITR 591. (10) Ashvin Kumar Vadilal Patel v. S. Rajguru - (1987) 165 ITR 583. (11) Ashvin Kumar Vadilal Patel v. P.T. Mehta, ITO - (1989) 178 ITR 385. (12) Dr. (Mrs.) Geeta Gupta v. IAC of I.T - (1987) 168 ITR 222. 9. The issue before the Hon ble Madras High Court was (I) whether the Settlement Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation under Section 32E for settlement of cases can be entertained by them even if proceedings for the prosecution for any offence under the Central Excise Act (with reference to this case) have been instituted before the date of receipt of the application under Section 32E. 11. In the above view of the matter the Commission finds it a suitable case and, therefore, allows the application to be proceeded with under Section 32F(1). The Applicant shall pay the admitted duty liability of Rs. 14,95,834/- within 30 days of receipt of this order as provided in sub-section (3) of Section 32F of Central Excise Act, 1944. However, the Applicant has requested for payment of duty in instalments. The Commission has considered this and allow the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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