TaxTMI 
TaxTMI 
2006 (8) TMI 209
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....tself, an application was filed before the Settlement Commission. The petitioner admitted duty liability of Rs. 34,21,109/-. 3.Stand of the department was that the case involved duty evasion by clandestine removal and fraud. The assessee remained avoiding filing of reply even after remand by the Tribunal and sought time from the department on 6-10-2004 for approaching the Settlement Commission. Report dated 26-8-2005 submitted to the Commission opposed admission of application. 4.The Commission observed that the petitioner had been delaying the adjudication and moved the Commission about one year after making a statement before the department. It was observed that on the date when application was made, no proceeding was pending before any Adjudicating Officer or Central Government and the matter was, thus, not covered by the definition of "case" as defined under Section 31(c) of the Act. 5.We have heard learned counsel for the parties and perused the record. 6.Learned Counsel for the petitioner submitted that the Commission wrongly held that the petitioner was delaying the proceedings and that application was filed on 11-8-2005, while the order passed on 11-8-2005 by th....
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....aw." 8.Before considering the issue, it is necessary to notice the relevant provisions of Section 32E and F of the Act, which are as under : "32E. Application for settlement of cases. - An assessee may, at any stage of a case relating(1) to him make an application in such form and in such manner as may be prescribed, and containing a full and true disclosure of his duty or liability which has not been disclosed before the Central Excise Officer having jurisdiction, the manner in which such liability has been derived, the additional amount of excise duty accepted to be payable by him and such other particulars as may be prescribed including the particulars of such excisable goods in respect of which he admits short levy on account of misclassification or otherwise of such excisable goods, to the Settlement Commission to have the case settled and any such application shall be disposed of in the manner hereinafter provided : Provided that no such application shall be made unless - (a) the applicant has filed returns showing production, clearance and central excise duty paid in the prescribed manner; (b) &n....
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....Excise within a period not exceeding two months from the date of receipt of such application, unless the presiding officer of the Bench extends the time, recording the reasons in writing. (2)A copy of every order under sub-section (1) shall be sent to the applicant and to the Commissioner of Central Excise having jurisdiction. (3)Subject to the provisions of sub-section (4), the applicant shall within thirty days of the receipt of a copy of the order under sub-section (1) allowing the application to be proceeded with, pay the amount of additional duty admitted by him as payable and shall furnish proof of such payment to the Settlement Commission. (4)If the Settlement Commission is satisfied, on an application made in this behalf by the assessee that he is unable for good and sufficient reasons to pay the amount referred to in sub-section (3), within the time specified in that sub-section, it may extend the time for payment of the amount which remains unpaid or allow payment thereof by instatements, if the assessee furnishes adequate security for the payment thereof. (5)Where the additional amount of duty referred to in sub-section (3) is not paid by the assessee within ....
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....enalty or interest, the manner in which any sums due under the settlement shall be paid and all other matters to make the settlement effective and shall also provide that the settlement shall be void if it is subsequently found the Settlement Commission that it has been obtained by fraud, or misrepresentation of facts. (10)Where any duty payable in pursuance of an order under sub-section (7) is not paid by the assessee within thirty days of the receipt of a copy of the order by him, then whether or not the Settlement Commission has extended the time for payment of such duty or has allowed payment thereof by instalments, the assessee shall be liable to pay simple interest at the rate of eighteen per cent, per annum or at such other rate as notified by the Central Board of Excise and Customs on the amount remaining unpaid from the date of expiry of the period of thirty days aforesaid. (11)Where a settlement becomes void as provided under sub-section (9) the proceedings with respect to the matters covered by the Settlement shall be deemed to have been revived from the stage at which the application was allowed to be proceeded with by the Settlement Commission and the Central Exc....
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....mission on the facts of each case and no straitjacket formula for any universal application can be laid down." 12.In Commissioner of Income Tax v. Express Newspapers Limited, (1994) 206 ITR 443 (SC), it was observed :- "....It is neither possible nor advisable to seek to lay down exhaustively the several situations in which the Commission would decide to allow the application to be proceeded with or in which the application has to be rejected. A case may be a complex one; it may involve prolonged or cumbersome investigation. Another situation may be where having regard to the nature of the case and other circumstances, the Commission may feel in the interest of the Revenue and in the interest of justice that it is better to give a quietus to the case once for all instead of allowing it to be fought through the usual channels. The decision has to be taken by the Commission having regard to all the facts and circumstances before it, in the light of the object, purpose and scheme of the enactment. It is precisely because such wide discretion is given to the Commission that the Act requires that it should be manned by men of integrity and outstanding ability, having special knowl....