Settlement Commission

Introduction
The object behind the setting up the Settlement Commission (hereinafter referred as the Commission) is to create a channel whereby tax disputes can be settled expeditiously and in a spirit of conciliation rather than prolonging them through adversarial attitude. The Commission is not designed to provide an escape route for tax evaders. It is, infact, designed to provide a balanced resolution of tax disputes with a view to avoid lengthy litigation which helps neither the department nor the member of the Trade and Industry. In the proceedings before the Commission, there are no adversaries but only parties to the Settlement. Any assessee can make an application in such form and in such manner as may be prescribed by the Commission and containing “Full & True” disclosure of his duty liability which has not been disclosed before the proper officer having jurisdiction, the manner in which such liability has been derived, the additional amount of Customs or Excise Duty or Service Tax accepted to be payable by him as also the particulars of excisable goods or import or export goods or taxable services in respect of which he admits short levy


Powers:

1.  The Settlement Commission has powers to grant immunity from prosecution for any offence under the Central Excise Act, the Customs Act or under the Indian Penal Code or under any other Central Act for the time being in force in respect of the case covered by the Settlement Commission.

2.  The Commission also has powers to grant immunity either wholly or in part from the imposition of any penalty and fine under the Central Excise Act or the Customs Act, as the case may be in respect of the case covered by the Settlement Commission.

3.  The proceedings before the Settlement Commission shall be deemed to be a judicial proceeding within the meaning of Section 193 and 228, and for the purposes of Section 196 of the Indian Penal Code.