Petitioner's Writ Petition Dismissed by High Court, Upholding Customs Commission's Decision

The High Court dismissed the petitioner's writ petition seeking to quash an order by the Customs and Central Excise Settlement Commission and to direct a decision on their application under Section 32E of the Central Excise Act. The Court upheld the Commission's decision to reject the review application due to the petitioner's failure to file the directed affidavit supporting their claim. It was determined that the Commission had the authority to remand the matter for further adjudication based on complexities involved, and previous court orders also influenced the decision. The writ petition was found to lack merit and was dismissed.

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Issues:
Petition under Article 226 to quash order by Customs and Central Excise Settlement Commission and mandamus to decide application under Section 32E of Central Excise Act.

Analysis:
The petitioner, a paints and varnish manufacturer, filed a petition under Article 226 seeking to quash an order passed by the Customs and Central Excise Settlement Commission and to direct a decision on their application under Section 32E of the Central Excise Act. The petitioner was issued a show-cause notice based on allegations of clandestine removal of excisable goods and production suppression. The petitioner had filed an application before the Settlement Commission, which was initially sent back to the Adjudicating Officer based on an agreement by the petitioner's Senior Counsel. A subsequent writ petition challenging this decision was dismissed by the High Court, which directed the petitioner to file an affidavit to support their claim of no concession being made. However, as no affidavit was filed, the Court declined to interfere. A review application was then filed before the Settlement Commission, which was rejected on the grounds of non-filing of the affidavit by the Senior Counsel.

The petitioner argued that the application could not be withdrawn once admitted by the Settlement Commission, citing Section 32E(4) of the Act. They contended that there was no concession made for sending the matter back to the Adjudicating Authority, as per Section 32L(1) of the Act. The Court found these arguments to be misconceived. The Settlement Commission's order indicated that the Senior Counsel had agreed for remand due to the complexities involved, requiring an exhaustive examination of each issue with related evidence. The Commission, considering the need for an exhaustive inquiry, decided to send the matter back to the Adjudicating Authority based on the agreement expressed by the Senior Counsel. The Court, noting the absence of the affidavit as directed, upheld the Commission's decision to reject the review application. Additionally, it was observed that the Commission had the power under Section 32F(7) of the Act to pass orders as deemed fit, including remanding the matter for fresh adjudication. The Court also highlighted that a previous order by the Court would also impact the petitioner's case.

In conclusion, the Court found no merit in the writ petition and dismissed it in limine.

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