Court directs Settlement Commission in Chennai to hear condonation of delay application, prohibits actions against petitioner.

The Court directed the application for condonation of delay to be placed before the Bench of the Settlement Commission in Chennai, granting the petitioner an opportunity to be heard. The Settlement Commission was instructed to pass appropriate orders on the matter within three weeks, prohibiting the respondents from taking any precipitative action against the petitioner without the Court's leave. The petitioner was set to appear before the Settlement Commission on 19-2-2018, and the writ petition was disposed of accordingly.

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Issues:
Petition challenging rejection of application seeking condonation of delay before the Customs, Central Excise and Service Tax Settlement Commission.

Analysis:
The petitioner, M/s. Flight Raja Travels Private Limited, filed a petition challenging the rejection of their application seeking condonation of delay before the Customs, Central Excise and Service Tax Settlement Commission. The rejection was based on the ground that the Bench could not take up the matter further, as communicated in Annexure-P dated 12-12-2017. The petitioner's counsel argued that Rule 10 of the Customs and Central Excise Settlement Commission Procedure, 2007 allows the Bench to dispose of settlement applications or related matters as directed by the Chairman. The delay in payment of interest, which was the subject of the application, warranted consideration by the Settlement Commission, and a delay of four days should be condoned. However, instead of considering the matter, the respondent-Commissioner conveyed the rejection of the application.

The Court acknowledged the merit in the petitioner's submission and recognized the need for the Settlement Commission to address the circumstances leading to the delay in payment of interest. Despite this, the Court expressed its disinclination to keep the writ petition pending solely for this purpose. Consequently, without issuing notice to the respondents, the Court directed that the application for condonation of delay be placed before the Bench of the Settlement Commission in Chennai. The Settlement Commission was instructed to provide an opportunity for the petitioner to be heard and then pass appropriate orders on the matter.

The Court set a specific timeline for the petitioner to appear before the Settlement Commission on 19-2-2018. Additionally, a period of three weeks was granted to the Settlement Commission to pass an order on the issue. Until the Settlement Commission issued its decision as directed, the respondents were prohibited from taking any precipitative action against the petitioner without the specific leave of the Court. Subsequently, the writ petition was disposed of, and a copy of the order was directed to be sent to the respondents promptly.

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