- (1.) This writ petition has been filed against rejection of petitioner's application by the Settlement Commission under Section 32E of the Central Excise Act, 1944 (for short, 'the Act'). Facts noticed in the impugned order are that the petitioner is engaged in the manufacture of cold rolled strips and ERW precision tubes from HR coils and HR strips. Officers of Central Excise (Preventive) visited the factory of the petitioner on 21.4.1999 and resumed certain records. After investigation, a show cause notice was issued claiming duty of Rs. 1,11,05,584/- with interest and penalty. Case was adjudicated upon by the Commissioner on 5.12.2003. On appeal, the matter was remanded by the Tribunal on 25.6.2004. The matter was again adjudicated upon by the Commissioner on 11.8.2005. On 11.8.2005 itself, an application was filed before the Settlement Commission. The petitioner admitted duty liability of Rs. 34,21,109/-.
(2.) Stand of the department was that the case involved duty evasion by clandestine removal and fraud. The assessee remained avoiding filing of reply even after remand by the Tribunal and sought time from the department on 6.10.2004 for approaching the Settlement Commission. Report dated 26.8.2005 submitted to the Commission opposed admission of application.
(3.) The Commission observed that the petitioner had been delaying the adjudication and moved the Commission about one year after making a statement before the department. It was observed that on the date when application was made, no proceeding was pending before any Adjudicating Officer or Central Government and the matter was, thus, not covered by the definition of "case" as defined under Section 31(c) of the Act. We have heard learned Counsel for the parties and perused the record.;