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2014 (5) TMI 1103 - HC - Central ExcisePower of Settlement Commission to grant immunity from prosecution and penalty - Held that:- It is true that ordinarily the settlement comes as a package and composite tax statement is either to be accepted or rejected. The settlement tax cannot be accepted only in part. Where, however, the settlement is under different heads, which are segregable there is no reason why the part of the settlement which is legally unsustainable cannot be set aside, if the same is segregable. In the instant case, the Settlement Commission, has allowed the demand of the department in full in respect of Central Excise duty, Education Cess, interest and even penalty and given the writ petitioners relief only from prosecution. The penalty being segregable and legally unsustainable, the same is liable to be set aside by this Court. For the reasons discussed above, the writ petition is allowed. The impugned Final Order passed by the Customs and Excise Settlement Commissioner, Additional Bench, Kolkata, is set aside to the extent it purports to levy penalty on the petitioners. The concerned respondents shall forthwith, and in any case within two months from the date of receipt of a certified copy of this order, refund the penalty amount paid by and/or realized from the respective writ petitioners.
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