Settlement Commission lacks review power; Order set aside for lack of jurisdiction

The court held that the Settlement Commission lacked the authority to review its own order as the power of review must be expressly conferred by law. The Commission's order on the Review Application was deemed without jurisdiction, emphasizing that the power to review is not inherent. Consequently, the order was set aside, and the Commission was directed to treat Respondent No. 1's application as a preliminary objection to its jurisdiction and promptly decide on it. The court clarified that if a review order is without jurisdiction, it must be quashed, and the issue cannot be decided on its merits.

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Issues:
Challenge to orders of Settlement Commission on jurisdiction and review application.

Analysis:
The writ petition was filed by the Revenue challenging two orders of the Settlement Commission. The first order, dated 20/23rd February, 2001, admitted the application of Respondent No. 1 under Section 127C(1) of the Customs Act, directing payment of admitted liability. The Customs Authorities later filed a Review Application on 20th June, 2001, contesting the Settlement Commission's jurisdiction to entertain the application. The Commission's second order, dated 24th October, 2001, did not clearly address the jurisdictional issue but directed the Revenue to implement the interim order. The main contention was whether the Commission had the authority to review its own order and decide on jurisdiction.

At the final hearing, it was acknowledged that the Settlement Commission lacked the power to review its own order, as the power of review must be expressly conferred by law. The Commission's order on the Review Application, dated 24th October, 2001, was deemed without jurisdiction. The court emphasized that the power to review is not inherent and must be granted by law. Consequently, the order was set aside, and the Commission was directed to treat Respondent No. 1's application as a preliminary objection to its jurisdiction and decide on it promptly.

The Court clarified that if an order passed on a Review Application is without jurisdiction, it must be quashed, and the issue cannot be decided on its merits. The petition sought to ignore the review order and focus solely on the Commission's initial order of 20/23rd February, 2001. However, since the first order did not address the jurisdictional aspect, it was deemed inappropriate to assess its validity based on unconsidered grounds. The Court directed the Settlement Commission to conclusively decide on the jurisdiction issue within four weeks, without any cost implications for the parties involved.

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