2002 (1) TMI 413 - Commission - Central Excise

Summary

Issues:
Settlement application by M/s. Spin Packaging Ltd. for central excise duty liability and penalties.

Analysis:
- Brief Facts of the Case:
- M/s. Spin Packaging Ltd. engaged in manufacturing HDPE/PP woven fabrics faced a surprise visit by Central Excise officers revealing shortages in stock of final products and inputs.
- Show Cause Notice issued for alleged suppression of production and demanding central excise duty.
- Order-in-Original confirmed duty demand, imposed penalties, and personal penalty on Shri Shashikant B. Jani.

- Settlement Application:
- Applicants filed settlement applications admitting the duty liability demanded, seeking immunity from fines, penalties, and prosecution.
- Commission allowed the applications to proceed, adjusted the amount already paid, and directed payment of the balance.
- Final hearing held, representation by consultants and authorized signatories of M/s. Spin Packaging Ltd.

- Submissions and Arguments:
- Consultant presented the case history, acceptance of duty liability, and payments made before and after the show cause notice.
- Requested immunity under Section 32K of Central Excise Act, waiver of penalties, and interest due to full disclosure and payment.
- Revenue argued against immunity, citing tampering with challans and removal of goods, questioning the penalty waiver.

- Commission's Observations and Decision:
- Commission reviewed submissions, finding full disclosure of duty liability and cooperation by the applicants.
- Granted immunity from prosecution under Central Excise Act and Indian Penal Code for the case.
- Imposed penalties as confirmed by the Additional Commissioner but waived the excess amount.
- Order stated the settlement would be void if obtained through fraud or misrepresentation, with instructions to inform all concerned.