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2013 (1) TMI 100 - HC - Central ExciseDemand of duty of excise on special discount, penalty of Rs.15 lacs and simple interest at the rate of 10% - petitioner opted to settle the dispute before the Settlement Commissioner - submissions only challenging imposition of penalty of Rs.15lacs - Held that:- Once the allegations in the show cause notices are admitted by the petitioner, it is not open to the petitioner to contend that the Settlement Commission ought to have passed a detailed reasoned order before imposing a penalty of Rs.15 lacs. It is also important to note that the Settlement Commission in the impugned order while settling the matter proceeded on the basis of the admission of the petitioner and applied the same test while imposing penalty. It is most relevant to note that in the spirit of settlement the Settlement Commission has imposed a penalty of only Rs.15 lacs and not equivalent penalty as proposed in the show cause notice issue for adjudication. There is an admission on the part of the petitioner with regard to conduct which alleges deliberate mis-declaration under valuation. Thus in the present facts mens rea was an admitted position and therefore not an issue before the Settlement Commission. Therefore, the Apex Court order in Sir Shadi Lal Sugar and General Mills Ltd. [1987 (11) TMI 1 - SUPREME COURT] as relied by assessee would have no application - in para 15 of the impugned Order the Settlement Commission decided not to examine the pleas of the petitioner on merits of duty demand as the same was admitted by the petitioner and for that very reason also does not disregard the valuation fraud for the purposes of imposing penalty, thus there has been no breach of law in the decision making process and the order imposing penalty does disclose the mind of the Settlement Commission in imposing penalty - writ dismissed.
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