TMI Blog2018 (3) TMI 1381X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri S.N. Bhattad with Shri Kunal Nalamwar, counsel for the petitioner. Shri Makarand Joshi with Shri V.S. Uberoi, counsel for the respondent. By this writ petition, the petitioner The Principal Commissioner of Customs, Excise and Service Tax, Nagpur has challenged the order of the Customs, Central Excise and Service Tax Settlement Commission dated 20.05.2016 insofar as it reduces the rate of interest and grants immunity from payment of penalty in excess of Rupees Ten Lakhs. An application was made by the respondent-company for settlement of the dispute before the settlement commission after receiving a show cause notice, dated 21.10.2014 from the Additional Director General, D.E.G.C.I. demanding service tax of ₹ 3,46,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for reducing the penalty to such an extent. The learned counsel relied on the judgment in the case of Indorama Synthetics (India) Ltd. Versus Union of India, reported in 2013(290) ELT 208 (Bom) to substantiate his submission. The learned counsel for the respondent, submitted that the jurisdiction of this Court under Article 226 of the Constitution of India may not be exercised for interferring with the order of the settlement commission as the scope for interference with the order of the settlement commission is limited. It is submitted that it is held by the Delhi High Court in the judgment reported in 2015(325) ELT 833 (Del.) (Directorate of Revenue Intelligence Versus M.I. Enterprises) that the proceedings before the settlem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d.), to hold that the rate of interest prevailing on the date of default would be applicable for calculating the interest liability. With no other judgment of any other High Court taking a contrary view, the settlement commission rightly followed the judgment of the Andhra Pradesh High Court to hold that the rate of interest prevailing on the date of default would be applicable for calculating the interest liability. While holding so, the settlement commission also took into account certain orders rendered by the settlement commission in the cases that are referred to in paragraph 7.3 of the impugned order. If the settlement commission has relied on the judgment of the Andhra Pradesh High Court which was holding the field at the releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion by the National Highways Authority of India and considering the cooperation extended by the respondent-company during investigation and in the proceedings before the settlement commission, it was inclined to grant partial immunity to the respondent-company from payment of penalty. It would not be permissible for this Court to sit in appeal over the findings recorded by the settlement commission. It is held by the Delhi High Court and the Calcutta High Court in the judgments relied on by the learned counsel for the respondent-company that the proceedings before the settlement commission are not adjudicatory in nature but they are by way of settlement. If the proceedings before the settlement commission are not adjudicatory in nature, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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