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TMI Blog2015 (11) TMI 1828X X X X Extracts X X X X X X X X Extracts X X X X ..... /98), seeking settlement of case relating to Show Cause Notice No. V(85)15-40/96/Adj/61911, dated 10-12-96, and subsequent Order-in-Original No. 12/CEX/97, dated 24-9-97 declaring tax arrears of Central Excise Duty of Rs. 2,69,944 and Penalty of Rs. 3,64,238. From the declarations dated 4-12-98 filed by you, it is noticed that you have shown the amount of tax arrears as under :- AMOUNT OF TAX ARREARS AS PER SHOW CAUSE NOTICE AMOUNT PAID ON OR BEFORE FILING OF DECLN. BALANCE AMOUNT PAYABLE AS ON THE DATE OF DECLN. DUTY 3,64,238/- 94,294/- Vide PLA E. No. 02, dated 15-6-98 2,69,944/- FINE NIL NIL NIL PENALTY 3,64,238/- NIL 3,64,238/- INTEREST 20% from date of liability NIL 20% from date of liability. On inquiry, it has been found that you, vide your letter No. MF/EXCISE/98 dated 15-6-1998 have intimated to Commissioner (Appeals), Bhopal that you have made the pre-deposit of total duty of Rs. 3,64,238/- vide PLA Entry Nos. 26, 27, 28, 29, 30, dated 4-10-96, PLA Entry Nos. 34, dated 9-10-96, PLA Entry No. 02, dated 15-6-98 & RG 23A Pt. II Entry No. 306, dated 16-6-98. Thus you have misdeclared the amount of pending arrears in your aforesaid declaration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment. 4. Having considered the rival submissions, we deem it apposite to reproduce the declaration filed by the petitioner under Section 89 of the Finance (No. 2) Act, 1988 in respect of Kar Vivad Samadhan Scheme, 1998 (Annexure P-11), which reads thus :- "Form of Declaration under section 89 of the Finance (No. 2) Act, 1988 in respect of Kar Vivad Samadhan Scheme, 1998 Kar Vivad Samadhan Scheme Rules, 1998 FORM-IB {See rule 3(l)(b)} To The Designated Authority Central Excise & Customs, BHOPAL. Sir/Madam, I hereby make a declaration under section 88 of the Finance (No. 2) Act, 1998. 1. Name of the declarant (in block letters) M/S MECH & FAB INDUSTRIES 17-B, Sector-D, Industrial Area, Govindpura, Bhopal. Tel. No. Office/factory 587404 586273 Fax 527693 2. Address : Office Factory address (if dispute relates excisable goods) ------ do ------ 3. Status of the declarant (State whether Manufacturer, company etc.) Manufacturer Dealer, Importer, Exporter, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of liability 7. Settlement amount Claimed as payable for the case under Section 88(f) (In Rs.) 50% of the above i.e. Rs. 1,34,972.00 8. Is there any seizure of goods involved in the Case, if so, give details of seizure. NIL 9. Is it a case where Department has filed an appeal against any of the orders passed at any stage in respect of this case, if so, give details. 10. Remarks VERIFICATION I, MAHESH AGRAWAL (name in block letters) son of Shri Bansidhar Agrawal solemnly declare that to the best of my knowledge and belief. (a) The information given in this declaration and statements and annexures accompanying it is correct and complete and amount of tax arrears and other particulars shown therein are truly stated. (b) I am not disqualified in any manner from making a declaration under the Scheme with reference to the provisions of Section 95 of Finance (No. 2) Act, 1998. I further declare that I am making this declaration in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - in original No. 12/CEN/Dc/97, dated 24-9-97 vide RG23-A Pt. II E. No. 306, dated 15-6-98, for Rs. 1,96,500/- without maintaining sufficient balance in RG23-A Pt. II account during the intervening period. You are directed to pay the Arrears of Rs. 1,96,500/- in cash or through RA. However, you can take revenue entry of the amount debited vide RG 23-A Pt. II E. No. 306, dated 15-6-98 as per law. Yours faithfully, Sd/- 2-12-98 Assistant Commissioner Central Excise Dv. I, Bhopal. Copy to : The Supdt. Central Excise, Range-IV for information and necessary action." 7. In response to the said communication the petitioner on 3-12-1998 (Annexure P-7) wrote back to the Commissioner as follows :- "MF/EXCISE/98 December 3, 1998 The Assistant Commissioner Central Excise Division-1. Bhopal Sub :- Intimation Ref :- Your Letter No. C.No. IV(16) 518-KVS/98, dated 2-12-98. Dear Sir, We refer to your above mentioned letter, accordingly we wish to inform you that we have reversed the amount of Rs. 1,96,500/- in RG-23A Part II vide Entry No. 1154, dated 2-12-98 against previously debited in RG-23A Part II entry No. 306, dated 15-6-98. This is for your kind informa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and taken by the assessee in the correspondence exchanged with the Department, prior to submission of such declaration. That approach will be counterproductive to the purpose and intent for which the Scheme has been launched - for resolution of the disputes. In other words, the declaration cannot be jettisoned at the threshold as has been done in the present case, by referring to the stand taken by petitioner in its previous correspondence exchanged with the Department. Instead, the Department ought to have treated the disclosures made in the declaration by the petitioner as relevant facts; and the correctness thereof could be judged on its own merits. For, the term "declaration", as expounded by the Supreme Court in B.S.N. Joshi & Sons Ltd. v. Nair Coal Services Ltd. and others [(2006) 11 SCC 548 (Para 40)], has a definite connotation. It is a statement of material facts announced solemnly or officially. It may constitute a formal announcement or deliberate statement. Thus, it is an act of declaring; something which is declared, or a statement made. In para 40 of the above decision, the Supreme Court held thus : "40. The expression "declaration" has a definite connotation. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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