Settlement Commission accepts revised customs duty computation and grants immunity from penalty, interest and prosecution.

Duty liability for removal of imported CRGO sheets was settled at a revised amount after the Revenue reworked the calculation on the basis of unused imported goods and the applicant accepted the revised computation. The Commission treated the revised duty of Rs. 7,85,732 as payable and required the balance to be paid within the stipulated time. On the facts, where the applicant had substantially paid duty before notice, made full and true disclosure, and cooperated throughout the settlement proceedings, immunity from penalty, interest and prosecution was granted as consequential relief.

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Issues: (i) Whether the applicant's duty liability for removal of imported CRGO sheets could be finally settled at the revised amount worked out by the Revenue. (ii) Whether immunity from penalty, interest and prosecution was warranted on the facts of the case.

Issue (i): Whether the applicant's duty liability for removal of imported CRGO sheets could be finally settled at the revised amount worked out by the Revenue.

Analysis: The applicant had earlier admitted the duty liability reflected in the show cause notice, but the Commission noticed that the goods were imported on payment of ad valorem duty and that the earlier calculation needed reworking with reference to the unused imported CRGO sheets. The Revenue accordingly recalculated the liability and the applicant accepted the revised computation.

Conclusion: The revised duty liability of Rs. 7,85,732 was accepted as payable, with the balance amount directed to be paid within the stipulated time.

Issue (ii): Whether immunity from penalty, interest and prosecution was warranted on the facts of the case.

Analysis: The applicant had substantially paid the duty before the show cause notice and cooperated throughout the settlement proceedings by making a full and true disclosure of duty liability. On that basis, the Commission considered the case fit for grant of consequential immunity.

Conclusion: Immunity from penalty, interest and prosecution was granted.

Final Conclusion: The settlement resolved the dispute by confirming the revised duty demand while granting relief from penal, interest and prosecutorial consequences.

Ratio Decidendi: A settlement applicant who makes a full and true disclosure and cooperates in the proceedings may be granted immunity from penalty, interest and prosecution, while the duty liability may still be settled on the basis of the correct recalculation.

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