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2014 (12) TMI 1258 - MADRAS HIGH COURTDemand of CENVAT credit - imposition of interest and penalty - clearance of imported/indigenous batteries as warranty replacements without payment of duty and without expunging the Cenvat credit amount availed by the petitioner - Held that: - It is settled legal principle that, the scope of interference of the order passed by the Settlement Commissioner is circumscribed, considering the scheme of Act and the power vested with the Commission so as to bring about a resolution to the dispute in a proper manner thereby balancing the interest of the assessee and protecting the interest of the Revenue. Bearing that legal principle in mind, if the impugned order is examined, the Settlement Commission has given elaborate reasons to justify their stand with regard to the demand of duty. With regard to the fixation of amount to be remitted to have the benefit of settlement, this Court cannot make a roving enquiry into the factual issues which has been dealt with by the Commission after taking note of the submission of the petitioner as well as the report submitted by the Revenue. Therefore, the findings rendered by the Commission directing the petitioner to pay the Central Excise duty at ₹ 37,80,089/- is confirmed. With regard to the levy of penalty on the first applicant/petitioner and the demand of interest, it is seen that the Settlement Commission did not give a specific finding that the conduct of the applicant/petitioner is contumacious or wilful with an intention to evade the duty. In fact, the Settlement Commission observed that the department’s case has been proved by applying the yardstick of possibility and probability and not because of the availability of adequate evidence. If such is the case, obviously, there is no reason to levy penalty of ₹ 2 lakhs on the first, applicant/petitioner nor to levy interest. Petition disposed off - decided partly in favor of petitioner.
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