Settlement Commission grants duty liability settlement under Customs Act, 1962

The Settlement Commission for Customs and Central Excise allowed the Applicant's application for settlement of duty liability under the Customs Act, 1962. The Applicant was directed to pay the balance amount of Rs. 33,92,832 within 60 days, with simple interest at 10% per annum on the unpaid amount. Immunity from interest, fines, penalties, and prosecution was granted to the Applicant and co-applicants, provided all material particulars were disclosed truthfully.

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Issues: Settlement of duty liability under the Customs Act, 1962; Immunity from interest, fine, penalties, and prosecution; Final settlement terms and conditions for the applicant and co-applicants.

In this judgment delivered by the Settlement Commission for Customs and Central Excise, the Applicant filed an application under Section 127B of the Customs Act, 1962 for settlement of proceedings initiated against him and seven others based on a Show Cause Notice issued by the Directorate of Revenue Intelligence. The applications were admitted and allowed to proceed under Section 127C(1) of the Customs Act. The total duty liability was determined to be Rs. 44,15,209, out of which the Applicant had already paid Rs. 10,22,377. The Applicant was directed to pay the balance amount of Rs. 33,92,832 within 60 days.

During the final hearing, the Applicant requested immunity from interest, fines, penalties, and prosecution, as the duty liability had been paid. The Revenue contended that interest should be charged. The Bench considered the arguments and found that the Applicant had paid the duty liability and cooperated with the Commission, warranting final settlement. However, the Bench decided that the Applicant should pay simple interest at 10% per annum on the balance amount from the date of imports until the amount was actually paid.

The final settlement terms included fixing the total duty liability at Rs. 44,15,209 with no further liability due since the full amount was paid. The Applicant was required to pay simple interest on the balance amount at 10% per annum for the due period. Immunity was granted to the Applicant and co-applicants from fines, penalties, and prosecution under the Customs Act, 1962. The settlement would be void if any material particulars were withheld or false evidence was given. The immunities were granted under Section 127H(1) of the Customs Act, with attention drawn to subsections (2) & (3) of Section 127H.

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