Section 32E. Application for settlement of cases

1[ 32E. Application for settlement of cases .—2[(1) An assessee may, in respect of a case relating to him, make an application, before adjudication, to the Settlement Commission to have the case settled, in such form and in such manner as may be prescribed and containing a full and true disclosure of his duty liability which has not been disclosed before the Central Excise Officer having jurisdiction, the manner in which such liability has been derived, the additional amount of excise duty accepted to be payable by him and such other particulars as may be prescribed including the particulars of such excisable goods in respect of which he admits short levy on account of misclassification, under-valuation, inapplicability of exemption notification or CENVAT credit[3] [or otherwise] and any such application shall be disposed of in the manner hereinafter provided: Provided that no such application shall be made unless,— (a) the applicant has filed returns showing production, clearance and central excise duty paid in the prescribed manner; (b) a show cause notice for recovery of duty issued by the Central Excise Officer has been received by the applicant; (c) the additional amount of duty accepted by the applicant in his application exceeds three lakh rupees; and (d) the applicant has paid the additional amount of excise duty accepted by him along with interest due under[4] [Section 11AA]: 5[Provided further that the Settlement Commission, if it is satisfied that the circumstances exist for not filing the returns referred to in clause (a) of the first proviso to sub-section (1), may after recording the reasons therefor, allow the applicant to make such application: Provided also that] no application shall be entertained by the Settlement Commission under this sub-section in cases which are pending with the Appellate Tribunal or any court: Provided also that no application under this sub-section shall be made for the interpretation of the classification of excisable goods under the Central Excise Tariff Act, 1985 (5 of 1986). ( 1 A)[6] [* * *]] (2)[7] [* * *] 1. Ins. by Act 21 of 1998, s. 110 (w.e.f. 1-8-1998). 2. Subs. by Act 22 of 2007, s. 121, for sub-section (1) (w.e.f. 1-6-2007). 3. Subs. by Act 14 of 2010, s. 65, for "but excluding the goods in respect of which no proper record has been maintained by the assessee in his daily stock register". 4. Subs. by Act 25 of 2014, s. 100(i)(a), for "Section 11AB". 5. Subs. by ibid ., s. 100(i)(b), for "Provided further that". 6. Sub-section (1A) omitted by Act 20 of 2015, s. 98. 7. Omitted by Act 25 of 2014, s. 100(ii). (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).