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2020 (3) TMI 306 - Commission - Central ExciseMaintainability of Application for Settlement application - bar under Section 32-O of the Act - co-applicant earlier approached Customs, Central Excise & Service Tax Settlement Commission, Additional Bench, Kolkata and was subsequently penalized ₹ 50,000/- - HELD THAT:- The debarring provision under Section 32-O(1)(i) refers to the case of the assessee to whom a SCN demanding duty has been issued and if during the process of settlement, the assessee has been imposed with certain amount of penalty, then such assessee cannot approach the Commission once again in a second .case where a demand has been issued to him. The co-applicant is a person other than the assessee and no demand for payment of any duty or tax has been issued to him. It is only because he has been implicated in the SCN demanding duty to the assessee with a proposal of penal action, he has approached the Settlement Commission to settle his issue. He therefore cannot be barred from approaching the Settlement Commission, if he is penalised earlier, as a main applicant or a co-applicant because he is not the main applicant. In the present case, M/s. Royal Touch Fablon Private Limited (Unit-1), the Co-applicant No. 1, has been proposed penalty in the SCN. This SCN was issued to M/s. Royal Touch Fablon Private Limited (Unit-IV). The case of M/s. Royal Touch Fablon Private Limited (Unit-IV) has already been settled by the Commission where he has applied as main applicant. Here, the co-applicant, M/s. Royal Touch Fablon Private Limited (Unit-I), has approached the Settlement Commission under Section 32E(5) to decide the issue of imposition of penalty. He has been penalised earlier in a case relating to him where he was an assessee and the main applicant. Since he is not the main applicant in the present case, he will not be debarred from approaching the Settlement Commission. Had he been the main applicant in this case to whom a duty demand has been issued in the form of a SCN, he would have been barred from approaching the Commission as he was penalised earlier in the settlement of another case relating to him where a SCN was issued to him demanding duty - the Commission is of the opinion that M/s. Royal Touch Fablon Private Limited (Unit-I), the Co-applicant No. 1, is not debarred from approaching the Settlement Commission and thus the Commission is admitting his case to decide the issue of penalty and prosecution. The Bench settles the case on the following terms and conditions :- (a) The Bench imposes penalty of ₹ 10,000/- (Rupees ten thousand only) on M/s. Royal Touch Fablon Private Limited (Unit-I) (Co-applicant No. 1), under the provisions invoked in the show cause notice and grants waiver in excess of the penalty indicated herein. (b) The Bench granted full immunity from penalty to Shri Vikas Kandoi (Co-applicant No. 2), Shri Raj Kr. Jaisansaria (Co-applicant No. 3) and Shri Pawan Sharma (Co-applicant No. 4). (c) Subject to the payment of the amounts ordered above by the Co-applicant No. 1 within 30 days of receipt of the order, the Co-applicant No. 1 is granted immunity from prosecution under the Central Excise Act, 1944 and Customs Act, 1962. (d) Shri Vikas Kandoi (Co-applicant No. 2), Shri Raj Kr. Jaisansaria (Co-applicant No. 3) and Shri Pawan Sharma (Co-applicant No. 4) are granted immunity from prosecution under the Central Excise Act, 1944 and Customs Act, 1962.
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