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2011 (3) TMI 790 - HC - CustomsPower of settlement commission to impose penalty - Clandestine removal - MPTEL is an 100% EOU engaged in the manufacture of ACSR conductors etc.- The duty free raw materials were used for manufacture of conductors, which were cleared to Domestic Tariff Area (DTA in short) - settlement commission imposed penalties imposed on the company and the persons responsible for the affairs of the company - Held that:- That power is available with the Settlement Commission in terms of Section 32F(9) of the Central Excise Act, 1944. In terms of Section 32K of the Central Excise Act, 1944, power to grant immunity from prosecution and penalty is available to the Settlement Commission. Section 32M of the Central Excise Act, 1944 makes the order of settlement conclusive. Petitioners are not able to establish a case to show that the order under challenge is contrary to law or is in any way perverse, arbitrary or without jurisdiction. The Court under Article 226 of the Constitution is not inclined to go into the issue relating to the quantum of penalty imposed by the Settlement Commission and the rational behind imposition of such penalty. The power given to the Settlement Commission, unless exercised in violation of the provision of the Act, cannot be challenged and the petitioners’ plea on the above issue fails.
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