9911796707
TMI Blog2018 (3) TMI 1381X X X X Extracts X X X X X X X X Extracts X X X X ..... immunity from payment of penalty in excess of Rupees Ten Lakhs. An application was made by the respondent-company for settlement of the dispute before the settlement commission after receiving a show cause notice, dated 21.10.2014 from the Additional Director General, D.E.G.C.I. demanding service tax of Rs. 3,46,84,205/with interest and proposed penalty. On being satisfied with the full and true disclosure of the tax liability by the respondent-company, the settlement commission had accepted the interest liability, as claimed by the respondent-company in the application made before the settlement commission. The settlement commission imposed the penalty of Rupees Ten Lakhs and granted immunity from payment of penalty in excess of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion as the scope for interference with the order of the settlement commission is limited. It is submitted that it is held by the Delhi High Court in the judgment reported in 2015(325) ELT 833 (Del.) (Directorate of Revenue Intelligence Versus M.I. Enterprises) that the proceedings before the settlement commission are not adjudicatory in nature but are by way of a settlement and the High Court would not sit in appeal over the order passed by the settlement commission. It is submitted that similar view is expressed by the Calcutta High Court in the judgment reported in 2016(342) ELT 234 (Cal.) (Commissioner of C.Ex., Kolkata-IV Versus Assam Tubes Ltd.) while refusing to interfere with the order of the settlement commission. It is submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmission also took into account certain orders rendered by the settlement commission in the cases that are referred to in paragraph 7.3 of the impugned order. If the settlement commission has relied on the judgment of the Andhra Pradesh High Court which was holding the field at the relevant time for holding that the rate of interest prevailing on the date of default would be applicable for calculating the interest liability, no fault could be found with the finding of the settlement commission in that regard. About the submission made on behalf of the petitioner that the settlement commission has not recorded any reasons for imposing the penalty of Rupees Ten Lakhs and granting immunity from payment of penalty in excess of the said amount, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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