TaxTMI 
TaxTMI 
2015 (11) TMI 1828
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....ed under the Kar Vivad Samadhan Scheme (allotted Decl. No. 26/98), seeking settlement of case relating to Show Cause Notice No. V(85)15-40/96/Adj/61911, dated 10-12-96, and subsequent Order-in-Original No. 12/CEX/97, dated 24-9-97 declaring tax arrears of Central Excise Duty of Rs. 2,69,944 and Penalty of Rs. 3,64,238. From the declarations dated 4-12-98 filed by you, it is noticed that you have shown the amount of tax arrears as under :- AMOUNT OF TAX ARREARS AS PER SHOW CAUSE NOTICE AMOUNT PAID ON OR BEFORE FILING OF DECLN. BALANCE AMOUNT PAYABLE AS ON THE DATE OF DECLN. DUTY 3,64,238/- 94,294/- Vide PLA E. No. 02, dated 15-6-98 2,69,944/- FINE NIL NIL NIL PENALTY 3,64,238/- NIL 3,64,238/- INTEREST 20% from date of liability NIL 20% from date of liability. On inquiry, it has been found that you, vide your letter No. MF/EXCISE/98 dated 15-6-1998 have intimated to Commissioner (Appeals), Bhopal that you have made the pre-deposit of total duty of Rs. 3,64,238/- vide PLA Entry Nos. 26, 27, 28, 29, 30, dated 4-10-96, PLA Entry Nos. 34, dated 9-10-96, PLA Entry No. 02, dated 15-6-98 & RG 23A Pt. II Entry No. ....
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....t in the declaration on 4-12-1998; nor entitled to any benefit under the Scheme on that count. This is the broad plea taken by the Department. 4. Having considered the rival submissions, we deem it apposite to reproduce the declaration filed by the petitioner under Section 89 of the Finance (No. 2) Act, 1988 in respect of Kar Vivad Samadhan Scheme, 1998 (Annexure P-11), which reads thus :- "Form of Declaration under section 89 of the Finance (No. 2) Act, 1988 in respect of Kar Vivad Samadhan Scheme, 1998 Kar Vivad Samadhan Scheme Rules, 1998 FORM-IB {See rule 3(l)(b)} To The Designated Authority Central Excise & Customs, BHOPAL. Sir/Madam, I hereby make a declaration under section 88 of the Finance (No. 2) Act, 1998. 1. Name of the declarant (in block letters) M/S MECH & FAB INDUSTRIES 17-B, Sector-D, Industrial Area, Govindpura, Bhopal. Tel. No. Office/factory 587404            586273      Fax     527693 2. Address : Office Factory address  ....
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....in Rs.) (See Instruction 6) PLA No. RG23 P(II) Date Amount 02 - 15-6-98 94294 94294 6. Balance amount payable as on the date of declaration (Col. 4-5) Duty/Cess Rs. 2,69,944.00 Fine Rs. Nil Penalty Rs. 3,64,238.00 Interest Rs. 20% from the date of liability 7. Settlement amount Claimed as payable for the case under Section 88(f) (In Rs.) 50% of the above i.e. Rs. 1,34,972.00 8. Is there any seizure of goods involved in the Case, if so, give details of seizure. NIL 9. Is it a case where Department has filed an appeal against any of the orders passed at any stage in respect of this case, if so, give details. 10. Remarks VERIFICATION ....
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....or MECH & FAB INDUSTRIES Sd/- Mahesh Agrawal Managing Director." 6. It may be mentioned at this stage that after this communication, the petitioner received communication from the Assistant Commissioner, Central Excise, Division-I on 2-12-1998, Annexure P-6, which reads thus :- "OFFICE OF THE ASSISTANT COMMISSIONER CENTRAL EXCISE, DIVISION, BHOPAL C. No. IV(16)818-KVs/98/7567 Bhopal dated 2-12-98 To, M/s. Meeh & Fab Industries 17-B, Sector-D, Industrial Area, Govindapura, Bhopal. Gentleman, Sub : Payment of Arrears through RG23A Part II-C/R. On scrutiny of RI 12 for the month of June, 98, it was observed by Range Supdt. That you have paid the arrears against order - in original No. 12/CEN/Dc/97, dated 24-9-97 vide RG23-A Pt. II E. No. 306, dated 15-6-98, for Rs. 1,96,500/- without maintaining sufficient balance in RG23-A Pt. II account during the intervening period. You are directed to pay the Arrears of Rs. 1,96,500/- in cash or through RA. However, you can take revenue entry of the amount debited vide RG 23-A Pt. II E. No. 306, dated 15-6-98 as per law. Yours faithfully, Sd/- 2-12-98 Assistant Commissioner Cen....
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....f the declaration against item Duty/cess was payable by the petitioner. 10. Assuming that the Department is right in pointing out that the duty/cess was already paid by the petitioner and was not due on 4-12-1998 when the declaration was filed, we fail to understand as to how that would result in causing willful loss to the public exchequer, as such. It would be a different matter, if the petitioner was to incorrectly claim that the amount was not outstanding on the day of filing declaration. Only then it would be a case of wrong or incorrect disclosure made to cause loss to public exchequer. Further, we hold that the correctness of the declaration submitted in the prescribed form for settlement of the dispute under the Scheme, cannot be judged on the basis of the stand taken by the assessee in the correspondence exchanged with the Department, prior to submission of such declaration. That approach will be counterproductive to the purpose and intent for which the Scheme has been launched - for resolution of the disputes. In other words, the declaration cannot be jettisoned at the threshold as has been done in the present case, by referring to the stand taken by petitioner in....