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TMI Blog2022 (12) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... m of liability which was indicated in the aforementioned show cause notice(s) is practically what has been the thrust on them via impugned orders. The impugned orders cannot be sustained - the matter is remitted to the concerned statutory authority for initiation of next steps, if any, as per the law. - W.P.(C) 4337/2018 & CM No.16837/2018 - - - Dated:- 16-11-2022 - HON'BLE MR. JUSTICE RAJIV SHAKDHER AND HON'BLE MS. JUSTICE TARA VITASTA GANJU Petitioners Through: Mr Dhruv Surana, Mr Madhav Bhatia and Mr Aditya Pandey, Advs. Respondents Through: Mr Aditya Singla, Sr Standing Counsel with Mr Adhishwar Suri and Mr Shobhit Jain, Advs. [Physical Hearing/Hybrid Hearing (as per request)] RAJIV SHAKDHER, J. (ORAL): 1. This writ petition is directed against the order dated 14.03.2018 and corrigendum dated 27.03.2018, passed by the Customs, Central Excise Service Tax Settlement Commission, Principal Bench, New Delhi [in short Settlement Commission ]. 2. The impugned orders came to be passed by the Settlement Commission in the backdrop of the following broad facts: 2.1 The writ petitioners (which includes proprietorship concerns as well) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve approached this court by way of a petition under Article 226 of the Constitution. 4. Mr Dhruv Surana, who appears on behalf of the petitioners, submits that the impugned orders passed by the Settlement Commission are flawed in law, for the reason that the Settlement Commission has clearly observed in paragraph 95 of the order dated 14.03.2018 that the petitioners have not made full and true disclosure and have not cooperated in the proceedings conducted by it. 4.1. It is, therefore, the submission of Mr Surana that given the said observation, the Settlement Commission should have remitted the matter to the concerned statutory authority under the Central Excise Act, 1944 [in short 1944 Act ] for adjudication in accordance with the law. 4.2. In support of this plea, Mr Surana has not only relied upon the provisions of Section 32L of the 1944 Act, but also placed reliance on the judgment of the Division Bench of this court rendered in SDL Auto Pvt. Ltd. v. Commissioner of Central Excise 2018 SCC OnLine Del 13925; 2019 (366) ELT 496 . 5. Mr Aditya Singla, who appears on behalf of the respondents/revenue, cannot but accept the position that the issue raised in the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue and concealed. Thereupon the assessee/applicant is barred and cannot again approach the Settlement Commission in another case. xxx xxx xxx 13. Settlement Commission has the power while passing an order under Sub-Section (5) to Section 32-F to enhance the duty liability, but it has no power to dispense with and waive the pre-conditions of full and true disclosure, the manner in which liability is derived and pre-payment of taxes/duty with interest on the disclosure made. Settlement Commission must record its satisfaction on the jurisdictional pre-conditions for only when the jurisdictional pre-conditions are satisfied that an order settling the case can be passed. In-eligible cases, where jurisdictional pre-conditions are not satisfied, must be returned to the board of the Central Excise Officer for adjudication of the show cause notice on merits . An order under Sub-Section (5) to section 32-F can enhance the duty liability as declared in the application but only when condition of full and true disclosure of undisclosed duty liability and the manner in which the liability was derived are satisfied. Satisfaction of the jurisdictional pre-conditions cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... short and do not give jurisdiction to the Settlement Commission to reject the settlement application on the ground of lack of full and true disclosure of undisclosed income and then proceed to pass an order in original adjudicating the show cause notice on merits as a Central Excise Officer. This is impermissible and beyond jurisdiction of the Settlement Commission. xxx xxx xxx 27. The provisions, relating to settlement of cases, are contained in Chapter V of the Act, comprising Sections 31 to 32P. Clause (c) of Section 31 defines case as meaning any proceeding under this Act or any other Act for the levy, assessment and collection of excise duty, pending before an adjudicating authority on the date on which an application under sub-section (1) of Section 32E is made. Sections 32 to 32D deal essentially with the constitution of the Settlement Commission, the Benches thereof, and the manner in which applications are to be distributed amongst Benches, etc., and are not of particular significance, insofar as the present proceedings are concerned. Section 32E deals with Application for settlement of cases . Sub-section (1), thereof, entitles an assessee to, in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resaid period, the Settlement Commission shall proceed to pass an order under sub-section (5) without such report. (5) After examination of the records of the report of the Principal Commissioner of Central Excise or Commissioner of Central Excise received under sub-section (3), and the report, if any, of the Commissioner (Investigation) of the Settlement Commission under sub-section (4), and after giving an opportunity to the applicant and to the Principal Commissioner of Central Excise or Commissioner of Central Excise having jurisdiction to be heard, either in person or through a representative duly authorised in this behalf, and after examining such further evidence as may be placed before it or obtained by it, the Settlement Commission may, in accordance with the provisions of this Act, passed such order as it thinks fit on the matters covered by the application and any other matter relating to the case not covered by the application, but referred to in the report of the Principal Commissioner of Central Excise, or Commissioner of Central Excise and the Commissioner (Investigation) under subsection (3) or sub-section (4). xxx xxx xxx 49. We are, therefore, unab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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