9911796707
TMI Blog2014 (12) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... , Division and were availing credit under Cenvat Credit Rules, 2002. When the officers of the Head Quarters Anti-Evasion, Trichy, visited the said unit on 26-2-2002, they found one box file containing 218 numbers of delivery challans evidencing clearance of imported/indigenous batteries as warranty replacements without payment of duty and without expunging the Cenvat credit amount availed by the petitioner. On completion of investigations, the Additional Commissioner, Pondicherry issued show cause notice dated 6-1-2004 as to why the petitioner should not be demanded Cenvat credit to the tune of Rs. 48,38,580/- besides proposals for imposing penalty under various sections of the Act and Rules and interest. 3. The petitioner approached ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned Central Government Standing Counsel appearing for the respondent and perused the materials placed on record. 5. It is settled legal principle that, the scope of interference of the order passed by the Settlement Commissioner is circumscribed, considering the scheme of Act and the power vested with the Commission so as to bring about a resolution to the dispute in a proper manner thereby balancing the interest of the assessee and protecting the interest of the Revenue. Bearing that legal principle in mind, if the impugned order is examined, the Settlement Commission has given elaborate reasons to justify their stand with regard to the demand of duty. With regard to the fixation of amount to be remitted to have the benefit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,089/-, yet he is also liable to pay interest on the said amount. Instead of doing so, the Settlement Commission could have quantified the higher amount. This having not been done and in the absence of any specific reason, the imposition of interest which is in the nature of penalty also is not sustainable. 7. Accordingly, the writ petition is partly allowed. The order passed by the Settlement Commission settling the Central Excise duty of Rs. 37,80,089/- is confirmed. The imposition of penalty on the first applicant/petitioner to pay a sum of Rs. 2 lakhs is deleted and the direction to pay simple interest at 10% on the settled amount, is set aside and the finding of the Settlement Commission granting immunity from prosecution is conf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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