Categories of cases that can be settled :

The following categories of cases can be settled as per section 32E:

a. Where the assessee has filed the application for settlement in respect of a case relating to him before the adjudication thereof;

b. If the applicant has filed returns showing production, clearance and central excise duty paid. However, if Settlement Commission is satisfied that circumstances exist for not filing the returns, it may allow the applicant to make an application for settlement after recording reasons for the same. Thus, Settlement Commission has the discretion to allow such applications after recording reasons therefor.

c. Where the applicant has received a show cause notice;

d. Where the case is not pending before the Appellate Tribunal or any Court;

e. Where the dispute does not relate to interpretation of classification;

f. Where the additional amount of duty accepted by the applicant in his application exceeds ` 3,00,000;

g. Where the applicant, while filing the application, has not deposited the additional amount of excise duty accepted by him along with interest due under section 11AA;

h. Where the assessee admits short levy in respect of excisable goods on account of misclassification, undervaluation, inapplicability of exemption notification or CENVAT credit or otherwise.