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2015 (9) TMI 455

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..... posed in show cause notice – Commission ought to be aware of ramifications of imposing penalty – Commission failed to apply its mind to this important aspect of matter and court constrained to set aside order passed by Commission to this limited extent – As result petition succeed – Commission's order to extent it imposes penalties on petitioner set aside – Matters sent back to Commission to examine whether it can impose penalties on parties and if it can in law whether there are circumstances justifying such imposition – Commission to re-examine this aspect and uninfluenced by its earlier order – Petition disposed of. - Writ Petition No.8678 of 2014, Writ Petition No.8679 of 2014, Writ Petition No.8680 of 2014 - - - Dated:- 9-3-2015 - .....

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..... itioner company and the employees are grave in nature. Mr. Sridharan submits in that regard the issue pertains to classification and was an arguable one. It is not as if the petitioner can be termed as guilty of suppression, misclassification or mis declaration of facts. There was a dispute and which was genuine. The Bench has assigned reasons in Para 8.4 that there is a letter dated 14 January 2009 on record from the overseas supplier of the petitioner company informing that source of elemental sulphur contained in the imported product insoluble sulpher crystex HB OT 20, was obtained from refining of crude oil. Mr. Sridharan submits that this letter firstly could not have been relied upon and to arrive at any conclusion, much less with reg .....

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..... en for the petitioners to argue now to the contrary. He therefore, submits that the aforesaid writ petitions be dismissed. 6) After having heard both sides and perusing the petition and all annexures thereto we find that there were allegations as set out in the show cause notice. The issue was of misclassification arising due to alleged suppression of facts regarding source of the insoluble sulphur crystex HB OT 20 by the petitioners. Foundation of imposition of penalty appears to be letter dated 14 January 2009. The letter was stated to have been suppressed so as to contest the departmental case on classification. We find that this letter and the jurisdictional Commissioner's report have been noted, but without adverting to the stan .....

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..... aware of the ramifications of imposing penalty. In such circumstances, when the Commission has failed to apply its mind to this important aspect of the matter that we are constrained to set aside the order passed by the Commission to this limited extent. Ordinarily, this Court would not have interfered in writ jurisdiction with the findings and conclusions of the Settlement Commission. That is the forum created by a statute and to deal with cases where voluntary disclosures are made and attempts made to settle the dispute amicably or with the assistance of the Commission. Therefore, a finding of fact would not have been interfered by us and equally the views in that behalf. However, when we find that the Commission has failed to perform its .....

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