2014 (9) TMI 712

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The petitioner is a manufacturer and is an assessee under the Central Excise Act. It has been filing the returns from time to time. A show cause notice was issued to it on 30.09.1998 pointing out that some of the facts were concealed and thereby same manufactured goods escaped excise duty. At that stage, the petitioner approached the Settlement Commission, the 2nd respondent, by filing an application under Section 32E of the Central Excise Act (for short the Act). It admitted that some irregularities have taken place in the past, and prayed for settlement of the matter. 3. The 2nd respondent entertained the application and verified the matter. At one stage, it has also directed the Commissioner attached to it, to make further investigati....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....imply observed that the assessee is not cooperating but, on the other hand, it proceeded to point out the aspects on which the true disclosure is not forthcoming. He submits that the 2nd respondent has taken note of the principles that govern the settlement of disputes under Section 32E of the Act and had passed the orders under Section 32L of the Act strictly in accordance with law. 6. The Central Excise Act, the Customs Act and the Income Tax Act provide mechanisms for adjudication of disputes, at various levels such as the appeals before the Commissioners and further appeals before the Tribunals. Apart from such adversarial mechanism, those enactments contain provisions for constitution of Settlement Commissions, which are conferred w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f to be granted by the Settlement Commission is in the form of immunity from prosecution. That, however, is a reward for the assessee being truthful. The relevant procedure mandates that it is only when the disclosure is complete and truthful in all respects, without any reservation, that the Settlement Commission can be expected to grant relief. If it finds that any information or fact that has bearing upon the assessment has been withheld from it, it can simply refrain from proceeding further, and drop the proceedings at that. In the instant case, the report submitted by the Commission as well as the facts referred to in para-4 of its order, the 2nd respondent has enlisted about 10 aspects, as regards which, information was withheld from ....