Settlement of admitted excise duty liability granted immunity from interest, penalty, fine and prosecution under settlement provisions.

The settlement mechanism under customs and central excise law was applied to an admitted differential duty liability where the applicant accepted the show cause notice demand and debited the amount in the CENVAT account. Full cooperation and a full and true disclosure of the duty liability were treated as sufficient for settlement. On that basis, the Commission settled the duty at the admitted amount and granted immunity from interest, fine, penalty, and prosecution, reflecting the operative relief available when statutory settlement conditions are satisfied.

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Issues: Whether the applicant was entitled to settlement of the admitted excise duty liability and consequential immunity from interest, penalty, fine, and prosecution under the settlement provisions.

Analysis: The applicant accepted the differential duty liability raised in the show cause notice and complied with the interim direction by debiting the admitted amount in the CENVAT account. The Commission recorded that the applicant had co-operated throughout the settlement proceedings and had made a full and true disclosure of the duty liability. On that basis, the Commission exercised its power to settle the duty under the settlement provisions and considered the applicant fit for relief from the consequential fiscal and penal consequences.

Conclusion: The duty liability was settled at the admitted amount, and immunity from fine, penalty, interest, and prosecution was granted to the applicant.

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