Settlement of admitted duty liability follows compliance with payment order, with immunity from interest, penalty and prosecution granted.

Compliance with the Settlement Commission's admission order and payment of the directed amount led to settlement of the admitted customs and excise duty liability, as the Revenue failed to conclusively rebut the applicant's evidence supporting receipt of the capital goods and the disputed Modvat credit. On that basis, the remaining duty controversy was treated as resolved with no further duty payable. The Commission also granted immunity from interest, penalty and prosecution to the applicant and co-applicants, relying on the applicant's compliance and cooperation in the settlement proceedings.

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Issues: (i) Whether the applicant was entitled to settlement of the admitted duty liability after making payment of the amount directed by the Settlement Commission. (ii) Whether, on the facts of the case, immunity from interest, penalty and prosecution could be granted to the applicant and the co-applicants.

Issue (i): Whether the applicant was entitled to settlement of the admitted duty liability after making payment of the amount directed by the Settlement Commission.

Analysis: The applicant had already complied with the admission order by paying the amount of Rs. 6,95,166/-. The only surviving controversy concerned Rs. 83,570/- of Modvat credit availed on capital goods. The applicant produced invoices, freight bills, cash book and supplier's ledger account to support receipt of the capital goods, while the Revenue could not conclusively disprove receipt or establish its objection beyond asserting absence of identification marks and alleging afterthought. In these circumstances, the liability was treated as fully settled on the basis of the amount already paid.

Conclusion: The duty liability stood settled at Rs. 6,95,166/-, and no further duty remained payable.

Issue (ii): Whether, on the facts of the case, immunity from interest, penalty and prosecution could be granted to the applicant and the co-applicants.

Analysis: The Settlement Commission took note of the applicant's compliance with the admission order and overall cooperation during the proceedings. In view of such compliance and the conclusion reached on the duty dispute, the Commission exercised its power to grant consequential immunities in respect of the present matter.

Conclusion: Immunity from interest, penalty and prosecution was granted to the applicant and the co-applicants.

Final Conclusion: The settlement application was finally concluded by accepting the duty payment already made and by extending statutory immunities in relation to the same proceedings.

Ratio Decidendi: Where the applicant complies with the admission order and the Revenue fails to conclusively rebut the supporting evidence for the disputed credit, the Settlement Commission may settle the duty liability and grant immunity from interest, penalty and prosecution under the settlement provisions.

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