7. Omitted by Act 25 of 2014, s. 100(ii).
56
(3) Every application made under sub-section
(1) shall be accompanied by such fees as may be
prescribed.
(4) An application made under sub-section
(1) shall not be allowed to be withdrawn by the applicant.
1
[
(5) Any person other than an assessee, may also make an application to the Settlement Commission
in respect of a show-cause notice issued to him in a case relating to the assessee which has been settled or
is pending before the Settlement Commission and such notice is pending before an adjudicating authority,
in such manner and subject to such conditions, as may be prescribed.]]
2
[ 3[32F. Procedure on receipt of an application under Section 32E.—
(1) On receipt of an
application under 4[* * *] Section 32E, the Settlement Commission shall, within seven days from the date
of receipt of the application, issue a notice to the applicant to explain in writing as to why the application
made by him should be allowed to be proceeded with, and after taking into consideration the explanation
provided by the applicant, the Settlement Commission, shall, within a period of fourteen days from the date
of the notice, by an order, allow the application to be proceeded with, or reject the application as the case
may be, and the proceedings before the Settlement Commission shall abate on the date of rejection:
Provided that where no notice has been issued or no order has been passed within the aforesaid period
by the Settlement Commission, the application shall be deemed to have been allowed to be proceeded with.
(2) A copy of every order under sub-section
(1), shall be sent to the applicant and to the 5[Principal
Commissioner of Central Excise or Commissioner of Central Excise] having jurisdiction.
(3) Where an application is allowed or deemed to have been allowed to be proceeded with under
sub-section
(1), the Settlement Commission shall, within seven days from the date of order under
sub-section
(1), call for a report along with the relevant records from the 5[Principal Commissioner of
Central Excise or Commissioner of Central Excise] having jurisdiction and the Commissioner shall furnish
the report within a period of thirty days of the receipt of communication from the Settlement Commission:
Provided that where the Commissioner does not furnish the report within the aforesaid period of
thirty days, the Settlement Commission shall proceed further in the matter without the report of the
Commissioner.
(4) Where a report of the Commissioner called for under sub-section
(3) has been furnished within the
period specified in that sub-section, the Settlement Commission may, after examination of such report, if it
is of the opinion that any further enquiry or investigation in the matter is necessary, direct, for reasons to
1. Ins. by Act 7 of 2017, s. 117.
2. Ins. by Act 21 of 1998, s. 110 (w.e.f. 1-8-1998).
3. Subs. by Act 22 of 2007, s. 122, for “section 32F” (w.e.f. 1-6-2007).
4. The word “sub-section
(1) of” omitted by Act 7 of 2017, s. 118
(i).
5. Subs. by Act 25 of 2014, s. 95, for “Commissioner of Central Excise”.
57
be recorded in writing, the Commissioner (Investigation) within fifteen days of the receipt of the report, to
make or cause to be made such further enquiry or investigation and furnish a report within a period of ninety
days of the receipt of the communication from the Settlement Commission, on the matters covered by the
application and any other matter relating to the case:]
Provided that where the Commissioner (Investigation) does not furnish the report within the
aforesaid period, the Settlement Commission shall proceed to pass an order under sub-section
(5)
without such report.
(5) After examination of the records and the report of the 1[Principal Commissioner of Central Excise
or Commissioner of Central Excise] received under sub-section
(3), and the report, if any, of the
Commissioner (Investigation) of the Settlement Commission under sub-section
(4), and after giving an
opportunity to the applicant and to the 1[Principal Commissioner of Central Excise or Commissioner of
Central Excise] having jurisdiction to be heard, either in person or through a representative duly authorised
in this behalf, and after examining such further evidence as may be placed before it or obtained by it, the
Settlement Commission may, in accordance with the provisions of this Act, pass such order as it thinks fit
on the matters covered by the application and any other matter relating to the case not covered by the
application, but referred to in the report of the 1[Principal Commissioner of Central Excise or Commissioner
of Central Excise] and Commissioner (Investigation) under sub-section
(3) or sub-section
(4).
2
[(5A) The Settlement Commission may, at any time within three months from the date of passing of
the order under sub-section
(5), amend such order to rectify any error apparent on the face of record, either
suo motu or when such error is brought to its notice by the jurisdictional Principal Commissioner of Central
Excise or Commissioner of Central Excise or the applicant:
Provided that no amendment which has the effect of enhancing the liability of the applicant shall
be made under this sub-section, unless the Settlement Commission has given notice of such intention
to the applicant and the jurisdictional Principal Commissioner of Central Excise or Commissioner of
Central Excise as the case may be, and has given them a reasonable opportunity of being heard.]
(6) An order under sub-section
(5) shall not be passed in respect of an application filed 3[* * *] after
nine months from the last day of the month in which the application was made, failing which the settlement
proceedings shall abate, and the adjudicating authority before whom the proceeding at the time of making
the application was pending, shall dispose of the case in accordance with the provisions of this Act as if no
application under Section 32-E had been made:
1. Subs. by Act 25 of 2014, s. 95, for “Commissioner of Central Excise”.
2. Ins. by Act 7 of 2017, s. 118(ii).
3. The words “on or before the 31st day of May, 2007, later than the 29th day of February, 2008 and in respect of an application
made on or after the 1st day of June, 2007,” omitted by Act 20 of 2015, s. 99.
58
1
[
Provided that the period specified under this sub-section may, for reasons to be recorded in writing,
be extended by the Settlement Commission for a further period not exceeding three months.]
(7) Subject to the provisions of Section 32A, the materials brought on record before the Settlement
Commission shall be considered by the Members of the concerned Bench before passing any order under
sub-section
(5) and, in relation to the passing of such order, the provisions of Section 32D shall apply.
(8) The order passed under sub-section
(5) shall provide for the terms of settlement including any
demand by way of duty, penalty or interest, the manner in which any sums due under the settlement shall
be paid and all other matters to make the settlement effective and in case of rejection contain the reasons
therefor and it shall also provide that the settlement shall be void if it is subsequently found by the
Settlement Commission that it has been obtained by fraud or misrepresentation of facts:
Provided that the amount of settlement ordered by the Settlement Commission shall not be less
than the duty liability admitted by the applicant under Section 32E.
(9) Where any duty, interest, fine and penalty payable in pursuance of an order under sub-section
(5),
is not paid by the assessee within thirty days of receipt of a copy of the order by him, the amount which
remains unpaid, shall be recovered along with interest due thereon, as the sums due to the Central
Government by the Central Excise Officer having jurisdiction over the assessee in accordance with the
provisions of Section 11.
(10) Where a settlement becomes void as provided under sub-section
(8), the proceedings with respect
to the matters covered by the settlement shall be deemed to have been revived from the stage at which the
application was allowed to be proceeded with by the Settlement Commission and the Central Excise Officer
having jurisdiction may, notwithstanding anything contained in any other provision of this Act, complete
such proceedings at any time before the expiry of two years from the date of the receipt of communication
that the settlement became void.]
2
[32G. Power of Settlement Commission to order provisional attachment to protect revenue.—
Where, during the pendency of any proceeding before it, the Settlement Commission is of the opinion that
for the purpose of protecting the interests of revenue it is necessary so to do, it may, by order, attach
provisionally any property belonging to the applicant in the manner as may be prescribed.
(2) Every provisional attachment made by the Settlement Commission under sub-section
(1) shall cease
to have effect from the date, the sums due to the Central Government for which such attachment is made
are discharged by the applicant and evidence to that effect is submitted to the Settlement Commission.]
1. Ins. by Act 14 of 2010, s. 66.
2. Ins. by Act 21 of 1998, s. 110 (w.e.f. 1-8-1998).
59
1
[32H. [Power of Settlement Commission to reopen completed proceedings.]—Omitted by Finance
Act 2015 (Act 20 of 2015), s. 100.]
1
[32I. Powers and procedure of Settlement Commission.—
(1) In addition to the powers conferred
on the Settlement Commission under this Chapter, it shall have all the powers which are vested in a Central
Excise Officer under this Act or the rules made thereunder.
(2) Where an application made under Section 32E has been allowed to be proceeded with under Section
32F, the Settlement Commission shall, until an order is passed under sub-section 2[
(5)] of Section 32F,
have, subject to the provisions of sub-section 3[
(4)] of that section, exclusive jurisdiction to exercise the
powers and perform the functions of any Central Excise Officer, under this Act in relation to the case.
(3) In the absence of any express direction by the Settlement Commission to the contrary, nothing in
this Chapter shall affect the operation of the provisions of this Act in so far as they relate to any matters
other upon those before the Settlement Commission.
(4) The Settlement Commission shall, subject to the provisions of this Chapter, have power to regulate
its own procedure and the procedure of Benches thereof in all matters arising out of the exercise of its
powers, or of the discharge of its functions, including the places at which the Benches shall hold their
sittings.]
1
[32J. Inspection, etc., of reports.—No person shall be entitled to inspect, or obtain copies of, any
report made by any Central Excise Officer to the Settlement Commission; but the Settlement Commission
may, in its discretion furnish copies thereof to any such person on an application made to it in this behalf
and on payment of the prescribed fee:
Provided that , for the purpose of enabling any person whose case is under consideration to rebut any
evidence brought on record against him in any such report, the Settlement Commission shall, on an
application made in this behalf, and on payment of the prescribed fee by such person, furnish him with a
certified copy of any such report or part thereof relevant for the purpose.]
1
[32K. Power of Settlement Commission to grant immunity from prosecution and penalty.—The
Settlement Commission may, if it is satisfied that any person who made the application for settlement under
Section 32E has cooperated with the Settlement Commission in the proceedings before it and has made a
full and true disclosure of his duty liability, grant to such person, subject to such conditions as it may think
fit to impose, immunity from prosecution for any offence under this Act 4[and also either wholly or in part
1. Ins. by Act 21 of 1998, s. 110 (w.e.f. 1-8-1998).
2. Subs. by Act 22 of 2007, s. 124 (w.e.f. 1-6-2007), for “
(7)”.
3. Subs. by ibid, s. 124 (w.e.f. 1-6-2007), for “
(6)”.
4. Subs. by ibid, s. 125, for “or under the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in
force and also either wholly or in part from the imposition of any penalty, fine and interest” (w.e.f. 1-6-2007).
60
from the imposition of any penalty and fine] under this Act, with respect to the case covered by the
settlement:
Provided that no such immunity shall be granted by the Settlement Commission in cases where the
proceedings for the prosecution for any such offence have been instituted before the date of receipt of the
application under Section 32E.
1
[* * *]
(2) An immunity granted to a person under sub-section
(1) shall stand withdrawn if such person fails
to pay any sum specified in the order of the settlement passed under 2[sub-section
(5) of Section 32-F within
the time specified in such order], or fails to comply with any other condition subject to which the immunity
was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted.
(3) An immunity granted to a person under sub-section
(1) may, at any time, be withdrawn by the
Settlement Commission, if it is satisfied that such person had, in the course of the settlement proceedings,
concealed any particular material to the settlement or had given false evidence, and thereupon such person
may be tried for the offence with respect to which the immunity was granted or for any other offence of
which he appears to have been guilty in connection with the settlement and shall also become liable to the
imposition of any penalty under this Act to which such person would have been liable, had no such
immunity been granted.]
3
[32L. Power of Settlement Commission to send a case back to the Central Excise Officer.—
(1)
The Settlement Commission may, if it is of opinion that any person who made an application for settlement
under Section 32E has not cooperated with the Settlement Commission in the proceedings before it, send
the case back to the Central Excise Officer having jurisdiction who shall thereupon dispose of the case in
accordance with the provisions of this Act as if no application under Section 32E had been made.
(2) For the purpose of sub-section
(1), the Central Excise Officer shall be entitled to use all the materials
and other information produced by the assessee before the Settlement Commission or the results of the
inquiry held or evidence recorded by the Settlement Commission in the course of the proceedings before it
as if such materials, information, inquiry and evidence had been produced before such Central Excise
Officer or held or recorded by him in the course of the proceedings before him.
(3) For the purposes of the time-limit under Section 11A and for the purposes of interest under
Section 11BB, in a case referred to in sub-section
(1), the period commencing on and from the date of the
application to the Settlement Commission under Section 32E and ending with the date of receipt by the
1. Explanation omitted by Act 20 of 2015, S. 101.
2. Subs. by Act 22 of 2007, s. 125, for “sub-section
(7) of section 32F within the time specified in such order or within such
further time as may be allowed by the Settlement Commission” (w.e.f. 1-6-2007),
3. Ins. by Act 21 of 1998, s. 110 (w.e.f. 1-8-1998).
61
Central Excise Officer of the order of the Settlement Commission sending the case back to the Central
Excise Officer shall be excluded.]
1
[32M. Order of settlement to be conclusive.—Every order of settlement passed under
sub-section 2[
(5)] of Section 32-F shall be conclusive as to the matters stated therein and no matter covered
by such order shall, save as otherwise provided in this Chapter, be reopened in any proceeding under this
Act or under any other law for the time being in force.]
1
[32N. Recovery of sums due under order of settlement.—Any sum specified in an order of
settlement passed under sub-section 2[
(5)] of Section 32-F may, subject to such conditions if any, as may
be specified therein, be recovered, and any penalty for default in making payment of such sum may be
imposed and recovered as sums due to the Central Government in accordance with the provisions under
Section 11 by the Central Excise Officer having jurisdiction over the person who made the application for
settlement under Section 32E.]
1
[32O. Bar on subsequent application for settlement in certain cases.— 3[
(1)] 4[Where, 5[* * *]]—
(i) an order of settlement 6[* * *] provides for the imposition of a penalty on the person who made
the application under Section 32E for settlement, on the ground of concealment of particulars of his
duty liability; or
7
[Explanation.—In this clause, the concealment of particulars of duty liability relates to any such
concealment made from the Central Excise Officer.]
(ii) after the passing of an order of settlement 8[* * *] in relation to a case, such person is convicted
of any offence under this Act in relation to that case; or
(iii) the case of such person is sent back to the Central Excise Officer having jurisdiction by the
Settlement Commission under Section 32-L,
then, he shall not be entitled to apply for settlement under Section 32-E in relation to any other
matter.
(2) 9[* * *]]
1. Ins. by Act 21 of 1998, s. 110 (w.e.f. 1-8-1998).
2. Subs. by Act 22 of 2007, s. 126, for “
(7)” (w.e.f. 1-6-2007),.
3. Renumbered by ibid, s. 128.
4. Subs. by ibid, s. 128, for “Where”.
5. The words “before the 1st day of June, 2007” Omitted by Act 14 of 2010, S. 67
(a)
(i).
6. The words “passed under sub-section
(7) of Section 32-F, as it stood immediately before the commencement of Section 122 of
the Finance Act, 2007 (22 of 2007) or sub-section
(5) of Section 32-F” omitted by Act 20 of 2015, s. 102
(a).
7. Ins. by Act 25 of 2014, s. 101.
8. The words “under the said sub-section
(7), as it stood immediately before the commencement of Section 122 of the Finance
Act, 2007 (22 of 2007) or sub-section
(5) of Section 32-F” omitted by Act 20 of 2015, s. 102
(b).
9. Ins. by Act 22 of 2007, s. 128 and omitted by Act 14 of 2010, s. 67
(b).
62
1
[32P. Proceedings before Settlement Commission to be judicial proceedings.—Any proceedings
under this Chapter before the Settlement Commission shall be deemed to be a judicial proceeding within
the meaning of Sections 193 and 228, and for the purposes of Section 196 of the Indian Penal Code.]
32PA. [Certain persons who have filed appeals to the Appellate Tribunal entitled to make
applications to the Settlement Commission.]— Omitted by Finance Act 2007 (22 of 2007), s. 129 (w.e.f.
1-6-2007).
CHAPTER VI
ADJUDICATION OF CONFISCATIONS AND PENALTIES
33. Power of adjudication.— 2[Where under this Act or by the rules made thereunder] anything is
liable to confiscation or any person is liable to a penalty, such confiscation or penalty may be adjudged—
(a) without limit, by a 3[Principal Commissioner of Central Excise or Commissioner of Central
Excise];
(b) up to confiscation of goods not exceeding five hundred rupees in value and imposition of penalty
not exceeding two hundred and fifty rupees, by an Assistant 3[Principal Commissioner of Central
Excise or Commissioner of Central Excise] 4[or Deputy 3[Principal Commissioner of Central Excise or
Commissioner of Central Excise]]:
Provided that the 5[Central Board of Excise and Customs constituted under the Central Boards of
Revenue Act, 1963 (54 of 1963)], may, in the case of any officer performing the duties of an
Assistant 3[Principal Commissioner of Central Excise or Commissioner of Central Excise], reduce the
limits indicated in clause
(b) of this section, and may confer on any officer the powers indicated in
clause
(a) or
(b) of this section.
6
[33A. Adjudication procedure.—
(1) The adjudicating authority shall, in any proceeding under this
chapter or any other provision of this Act, give an opportunity of being heard to a party in a proceeding, if
the party so desires.
(2) The adjudicating authority may, if sufficient cause is shown, at any stage of proceeding referred to
in sub-section
(1), grant time, from time to time, to the parties or any of them and adjourn the hearing for
reasons to be recorded in writing:
1. Ins. by Act 21 of 1998, s. 110 (w.e.f. 1-8-1998).
2. Subs. by Act 27 of 1999, s. 125, for “Where by the rules made under this Act” (w.e.f. 11-5-1999).
3. Subs. by Act 25 of 2014, s. 95, for “Commissioner of Central Excise”.
4. Ins. by Act 27 of 1999, s. 119.
5. Subs. by Act 54 of 1963, s. 5, for “Central Board of Revenue” (w.e.f. 1-1-1964).
6. Ins. by Act 23 of 2004, s. 81.
63
Provided that no such adjournment shall be granted more than three times to a party during the
proceeding.]
34. Option to pay fine in lieu of confiscation.—Wherever confiscation is adjudged under this Act or
the rules made thereunder, the officer adjudging it, shall give the owner of the goods an option to pay in
lieu of confiscation such fine as the officer thinks fit.
1
[34A. Confiscation or penalty not to interfere with other punishments.—No confiscation made or
penalty imposed under the provisions of this Act or of any rule made thereunder shall prevent the infliction
of any other punishment to which the person affected thereby is liable under the provisions of this Act or
under any other law.]
2
[CHAPTER VIA
APPEALS
35. Appeals to 3[Commissioner (Appeals).—
(1) Any person aggrieved by any decision or order
passed under this Act by a Central Excise Officer, lower in rank than a 4[Principal Commissioner of Central
Excise or Commissioner of Central Excise], may appeal to the 4[Principal Commissioner of Central Excise
or Commissioner of Central Excise] (Appeals) [hereafter in this Chapter referred to as the 3[Commissioner
(Appeals)]] 5[within sixty days] from the date of the communication to him of such decision or order:
6
[
Provided that the Commissioner (Appeals) may, if he is satisfied that the appellant was prevented
by sufficient cause from presenting the appeal within the aforesaid period of sixty days, allow it to be
presented within a further period of thirty days].
7
[(1A) The Commissioner (Appeals) may, if sufficient cause is shown, at any stage of hearing of an
appeal, grant time, from time to time, to the parties or any of them and adjourn the hearing of the appeal
for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during hearing
of the appeal.]
(2) Every appeal under this section shall be in the prescribed form and shall be verified in the prescribed
manner.
1. Ins. by Act 36 of 1973, s. 22, (w.e.f. 1-9-1973).
2. Subs. by Act 44 of 1980, s. 50 and Schedule V, Pt. II-2, for sections 35, 35A and 36 (w.e.f. 11-10-1982).
3. Substituted by Act 22 of 1995, s. 70, for “Collector (Appeals)” (w.e.f. 26-5-1995).
4. Subs. by Act 25 of 2014, s. 95, for “Commissioner of Central Excise”.
5. Subs. by Act 14 of 2001, s. 127, for “with three months” (w.e.f. 11-5-2001).
6. Subs. by ibid., s. 127, for proviso (w.e.f. 11-5-2001).
7. Ins. by Act 23 of 2004, s. 82 (w.e.f. 10-9-2004).
64
35A. Procedure in appeal.—
(1) The 1[Commissioner (Appeals)] shall give an opportunity to the
appellant to be heard, if he so desires.
(2) The 1[Commissioner (Appeals)] may, at the hearing of an appeal, allow an appellant to go into any
ground of appeal not specified in the grounds of appeal, if the 1[Commissioner (Appeals)] is satisfied that
the omission of that ground from the grounds of appeal was not wilful or unreasonable.
(3) 2[The Commissioner (Appeals) shall, after making such further inquiry as may be necessary, pass
such order, as he thinks just and proper, confirming, modifying or annulling the decision or order appealed
against:]
Provided that an order enhancing any penalty or fine in lieu of confiscation or confiscating goods
of greater value or reducing the amount of refund shall not be passed unless the appellant has been
given a reasonable opportunity of showing cause against the proposed order:
Provided further that where the 1[Commissioner (Appeals)] is of opinion that any duty of excise
has not been levied or paid or has been short-levied or short-paid or erroneously refunded, no order
requiring the appellant to pay any duty not levied or paid, short-levied or short-paid or erroneously
refunded shall be passed unless the appellant is given notice within the time-limit specified in Section
11A to show cause against the proposed order.
(4) The order of the 1[Commissioner (Appeals)] disposing of the appeal shall be in writing and shall
state the points for determination, the decision thereon and the reasons for the decision.
3
[(4A) The Commissioner (Appeals) shall, where it is possible to do so, hear and decide every appeal
within a period of six months from the date on which it is filed.]
(5) On the disposal of the appeal, the 1[Commissioner (Appeals)] shall communicate the order passed
by him to the appellant, the adjudicating authority 4[, the 5[Principal Chief Commissioner of Central Excise
or Chief Commissioner of Central Excise]] and the 6[Principal Commissioner of Central Excise or
Commissioner of Central Excise].
35B. Appeals to the Appellate Tribunal.—
(1) Any person aggrieved by any of the following orders
may appeal to the Appellate Tribunal against such order—
(a) a decision or order passed by the 6[Principal Commissioner of Central Excise or Commissioner
of Central Excise] as an adjudicating authority;
1. Substituted by Act 22 of 1995, Section 70, for “Collector (Appeals)” (w.e.f. 26-5-1995).
2. Subs. by Act 14 of 2001, s. 128
(a), for certain words (w.e.f. 11-5-2001).
3. Ins. by ibid., s. 128
(b) (w.e.f. 11-5-2001).
4. Ins. by Act 18 of 2005, s. 78.
5. Subs. by Act 25 of 2014, s. 95, for “Chief Commissioner of Central Excise”.
6. Subs. by ibid., s. 95, for “Commissioner of Central Excise”.
65
(b) an order passed by the 1[Commissioner (Appeals)] under Section 35-A;
(c) an order passed by the Central Board of Excise and Customs constituted under the Central
Boards of Revenue Act, 1963 (54 of 1963) (hereafter in this Chapter referred to as the Board) or the
Appellate 2[Principal Commissioner of Central Excise or Commissioner of Central Excise] under
Section 35, as it stood immediately before the appointed day;
(d) an order passed by the Board or the 2[Principal Commissioner of Central Excise or
Commissioner of Central Excise], either before or after the appointed day, under Section 35-A, as it
stood immediately before that day:
3
[Provided that no appeal shall lie to the Appellate Tribunal and the Appellate Tribunal shall not
have jurisdiction to decide any appeal in respect of any order referred to in clause
(b) if such order
relates to,—
(a) a case of loss of goods, where the loss occurs in transit from a factory to a warehouse or to
another factory, or from one warehouse to another, or during the course of processing of the goods in
a warehouse or in storage, whether in a factory or in a warehouse;
(b) a rebate
