2006 (7) TMI 548

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.... Poongudi, Partner and Shri S. Ramesh, Power of Attorney Holder of M/s. Pothys Clothing (P) Ltd. (hereinafter referred to as the "co-applicant"), have filed an application, dated 27-1-2006, under Section 32 of the Central Excise Act, 1944, for settlement of proceedings initiated under the Show Cause Notice, No. V/15/62/32/2005, dated 20-12-2005, issued by the Commissioner of Central Excise demanding duty of Rs. 1,47,67,522/- in respect of clandestine removals of ready-made garments manufactured and cleared by the applicants. The Show Cause Notice also proposed to deny deemed credit; recover interest and impose penalties under various provisions of Central Excise Act, 1944, and Central Excise Rules, 2002. 2. The application was admit....

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.... for waiver of penalty and prosecution for the co-applicants. 4. Smt. Yamuna Devi, Deputy Commissioner, appearing on behalf of the revenue, stated that necessary payments have been made in this case and as regards immunities sought for, she left it to the discretion of the Bench. 5. The Bench has heard both sides. The Bench observes that the applicant has admitted the duty liability by making payment of Rs. 95,00,000/-, before issue of Show Cause Notice and the balance of Rs. 44,24,412/- during February- March 2006, after issue of Admission Order. 6. The Bench further notes the plea of the applicant that they did not pay duty, as the garments were mostly manufactured by the job workers and, if the quantities of garme....

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....bove facts, the application is settled in terms of Section 32F(7) of the Central Excise Act, 1944 on the following terms and conditions :- (i)      The duty liability is settled at Rs. 1,47,67,522/-. Since this stands  fully paid by the applicant, no further duty is payable by them. (ii)    Immunity is granted from interest, in excess of Simple Interest @  10% p.a. Revenue should calculate the interest payable and  intimate the applicant within 15 days from the date of receipt of  this order, and the applicant shall pay the same within 15 days of  receipt of such a communication and report compliance. (iii)   Immunity from penalty, prosecution under Central ....