Customs settlement jurisdiction depends on pending adjudication; an already decided and dispatched matter is not maintainable before the Commission.

Settlement under the Customs Act is available only where the application is filed before adjudication and the matter remains pending. Exclusive jurisdiction of the Settlement Commission arises only after an application is allowed to proceed under Section 127C. Here, the adjudication order had already been passed and dispatched before that stage, so the dispute was no longer a pending case within Section 127A(b). The settlement application was therefore not maintainable and was rejected.

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Issues: Whether the settlement application was maintainable when the show cause notice had already been adjudicated and dispatched before the Settlement Commission acquired exclusive jurisdiction.

Analysis: The statutory scheme under Section 127B, Section 127C and Section 127F of the Customs Act, 1962 permits settlement only where an application is made before adjudication and the case remains pending. Exclusive jurisdiction of the Settlement Commission begins only when the application is allowed to be proceeded with under Section 127C. On the facts, the adjudication order had already been passed on 17-11-2017 and dispatched on 1-12-2017, whereas the application was allowed to proceed on 7-12-2017. The matter therefore was no longer pending adjudication and did not qualify as a 'case' within Section 127A(b).

Conclusion: The settlement application was not maintainable and was rejected.

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