- (1.) The maxim that the life of law is experience and not logic does not automatically make the law illogical or asinine as the petitioners would have one believe. The argument of the petitioners makes a mockery of the exercise undertaken by the Settlement Commission under the Central Excise Act, 1944 and the provisions relating thereto. The petitioner company proudly flaunts that it had dodged paying the duty leviable in a previous case whereupon it was slapped with a notice under Section 11 of the Act and it carried the matter before the Settlement Commission under Section 32E of the Act. Such provision permits an assessee, who has, inter alia, been served a show-cause notice for recovery of duty by a central excise officer, to approach the Settlement Commission to have the case settled by indicating the additional amount of excise duty accepted by the assessee to be payable and by furnishing such other particulars as may be relevant.
(2.) Upon an assessee carrying a matter before the Settlement Commission, it is not automatic that the application has to be taken up or processed. Leave has to be obtained from the commission for such purpose and the provisions recognise the commission having the authority to inquire of the petitioning assessee why it should be permitted to proceed before the Settlement Commission. It is possible that such notice is not issued; it is than [sic] proceed with the application is deemed to have been given. The procedure before the Settlement Commission requires a report to be furnished by the Principal Commissioner of Central Excise or Commissioner of Central Excise having jurisdiction over the matter. If such report is not furnished within the time indicated, the Settlement Commission may proceed with the matter nonetheless.
(3.) Section 32F of the Act lays does the procedure to be followed on receipt of an application under Section 32E thereof and sub-section (5) of the later provision gives due authority to the Settlement Commission to pass appropriate orders, including reducing or waiving the penalty that the assessee would otherwise be liable to pay for not disclosing the appropriate quantum of excise duty in the first place.;