Full and true disclosure in customs settlement applications can cure initial defects and allow the matter to proceed.

A settlement application under the Customs Act was tested against the requirement of full and true disclosure. The applicants initially misstated the admitted duty liability, but after scrutiny they amended the application and disclosed the liability consistently with the show cause notice. The Commission accepted the amended disclosure as complete and true, found that the statutory conditions for invoking settlement jurisdiction were satisfied, and allowed the application to proceed as maintainable under the Act.

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Issues: Whether the settlement application satisfied the statutory requirement of full and true disclosure so as to be allowed to proceed under the Customs Act, 1962.

Analysis: The applicants initially did not correctly state the admitted duty liability in the settlement application. On the Commission's scrutiny, the applicants amended the application and disclosed the duty liability as Rs. 12,80,188/-, being the amount indicated in the show cause notice. The Commission accepted the amended disclosure as complete and true, and found that the conditions prescribed for invocation of the settlement jurisdiction were satisfied.

Conclusion: The application was held maintainable and permitted to proceed under Section 127C(1) of the Customs Act, 1962.

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