IN RE: CHIRAL BIOSCIENCES LTD. Vs. STATE

JUDGEMENT

(1.) M/s. Chiral Biosciences Ltd., Mallapur, Hyderabad - 500 076 (hereinafter referred to as 'the applicant') filed an application along with 1. Shri L. Rameswar Reddy, Managing Director, 2. Shri G. Mdhusudhana Reddy, Assistant Manager (Central Excise), 3. Shri Dilip Kumar, Managing Director, M/s. Krishna Industries, Hyderabad, 4. Shri Ashish K. Muni, Partner, M/s. Aash Chemicals & Aash Organics, Mulund (East), Mumbai - 400 080, 5. Shri Deepak Viaywargla, Partner, M/s. Bestchem, Begum Bazar, Hyderabad - 500 012, 6. Shri Mahaveer Chand, Proprietor, M/s. Kaveri Industries, Jigani, 560 105, Bangalore South, 7. Shri Anup Kumar Chhawchharia, Director, M/s. ANR International Pvt. Ltd. (Previously known as M/s. Singhal Agencies Pvt. Ltd.), Laxmi Nagaar District Centre, Delhi - 110 092, 8. Shri Gautam Saraf, Partner, M/s. East India Corporation, Kolkata - 700 012, and 9. Shri G. Vishwanathan, Partner, M/s. Madhura Chemicals, Athipet; Chennai - 600 058, 10. Shri Amit Agarwal, M/s. Yug International Pvt. Ltd., Fazalganj, Kanpur, and 11. M/s. BR International, Mumbai - 400 003 (Co -applicants) for settlement under Sec. 32E of the Central Excise Act, 1944 which were received in this office on 14 -10 -2014 & 21 -10 -2014 in respect of the proceedings initiated under Show Cause Notice F. No. INV/DGCEI/CHZU/CE/10/2013/O.R. No. 17/2013/SCN No. 6/2014, dated 29 -1 -2014 issued by Additional Director General, DGCEI, Chennai answerable to the Commissioner of Central Excise, Hyderabad -III Commissionerate demanding Central Excise duty of Rs. 2,38,14,534/ - along with appropriate interest besides, imposition of penalty. The applications were assigned Application Nos. SA(E)120 -131/2014 -SC. The applicants were issued notice under Sec. 32F(1) of Central Excise Act, 1944 on 17 -10 -2014/23 -10 -2014 directing them to explain as to why the applications should not be rejected for non -compliance of the provisions of clause (d) of proviso to Sec. 32E(1) of the Central Excise Act, 1944 as the applicant has not paid the entire admitted duty liability besides not quantified the interest and paid the same, which is statutorily required to be done by them.

(2.) The applicant vide their reply dated 31 -10 -2014 have submitted that due to financial difficulties and due to non -availability of their Managing Director, they are not able to fulfill the statutory requirements. They further submitted that they expect their Managing Director's release from detention in a month and would thereafter be in a position to make the balance payments.

(3.) As per Sec. 32F(1) 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. In this case, the due date for allowing the application to be proceeded with or rejecting the application is 31 -10 -2014.