Settlement Commission directs duty payment and grants immunity under Central Excise Act

The Settlement Commission, Customs & Central Excise, M, found the applicant liable for duty evasion and directed payment of Rs. 17,87,305 in three instalments, with interest on the latter two. The applicant was granted immunity from fines, penalties, interest, and prosecution under the Central Excise Act, 1944, and the Indian Penal Code. The Commission waived fines and penalties due to cooperation and full disclosure, with the settlement order subject to nullification in case of fraud or misrepresentation.

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Issues: Duty liability admission, adjustment of payments, instalment facility, immunities sought, terms of settlement

The judgment by the Settlement Commission, Customs & Central Excise, M, involved the admission of duty liability by the applicant, adjustment of payments, consideration of instalment facility, immunities sought, and the terms of settlement. The applicant, a registered entity under the Central Excise Act, was found to have processed and removed fabrics clandestinely without payment of duty, leading to a demand notice of Rs. 31,04,223. After withdrawing an appeal, the applicant approached the Settlement Commission, accepting a duty liability of Rs. 10,43,598 and requesting instalment payment. The Commission directed the applicant to pay the balance amount in instalments, while also imposing restrictions on property disposal. The final hearing saw the applicant revising the liability to Rs. 17,87,305. During the hearing, the applicant admitted the full duty amount and sought appropriation of payments made, instalment facility, and immunities from fines, penalties, interest, and prosecution. The Commission, after reviewing the case records and pleas, laid down the terms of settlement under Section 32 F of the Central Excise Act, 1944.

In terms of duty of excise, the Commission found that the applicant disclosed the full duty liability demanded, with adjustments for payments made. The Commission directed the applicant to pay the balance duty in three instalments, with interest applicable on the latter two instalments. Fine and penalty were waived due to the applicant's cooperation and true disclosure. Interest was not levied considering the full disclosure and cooperation. Immunity from prosecution under the Central Excise Act, 1944, and the Indian Penal Code was granted to the applicants. The settlement order would be void if obtained through fraud or misrepresentation of facts.

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