TaxTMI 
TaxTMI 
2010 (3) TMI 497
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....rtain duty free cotton yarn/fabrics without paying duty for such imports. On gathering intelligence that the Appellant procured duty free cotton yarn/fabrics by availing benefits under Rule 19(2) of Central Excise Rules, 2002 as amended and used the back scheme. Investigations were conducted by Director of Central Excise & Intelligence, Chennai, who issued three show cause notices under : S. No. Party's Name (m/s.) SCN No. and date Amount of duty involved Commissionerate 1. M/s. Optigrab international, Chennai - 41. F. No. INV/DGCEI/ CHZU/88/2004/5820 dated 9-9-2008 SCN No. 82/2008 Rs. 2,09,784/- Deputy Commissioner Chennai Customs (SEA) 2. M/s. Optigrab International, Chennai - 41 F. No. INV/DGCEI/CHZU/88/2004/5820 9-9-2008 SCN No. 83/2008 Rs. 2,83,780/- Deputy Commissioner of Customs, Tuticorin 3. M/s. Optigrab international, Chennai - 41 F. No. INV/DGCEI/ CHZU/88/2004/5820 9-9-2008 SCN No. 84/2008 Rs. 1,42,021/- Deputy Commissioner Chennai Customs (AIR) Total liability 6,35,585/- The Appellant filed a single common application for settlement accepting the entire duty liability of Rs. 6,35,585/-....
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....sdiction and that 127(A)(b) was not to be strictly construed. 6. Continuing further, the learned counsel for the appellant referred to Section 4 of the Act which speaks of 'appointment of officers of Custom' to Section 5(2) of the Act which enjoins the 'Power of Officers of Customs'. Admittedly, Section 4(2) of the Act is a new provision which empowers the Central Government to delegate to the power and the superior officers of Customs, the power to appoint subordinate officers, indeed, Section 5(2) of the Customs Act is a new provision which enables the Officer of the Customs to perform functions of their subordinates when ever necessary. In this connection, it is significant to make a mention that in Sun Knitware Private Limited v. Commissioner of Custom (Adjudication), Mumbai - 2006 (202) E.L.T. 689 at page 691-92 (Tri.-Bangalore) = 2008 (10) S.T.R. 523 (Tri. - Bang.), it is held that 'in view of the ingredients of section 5(2) of the Act, it is not illegal on the part of the Commissioner to Adjudicate a case where the show cause notice was issued and answerable to the Additional Commissioner'. 7. Advancing the argument, the learned counsel for the appellant/petitioner con....
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....and Deputy Commissioner of Customs (Air), Chennai. The Appellant has filed Application for settlement of cases under section 127-B of the Customs Act. 12. Section 127-B of the Customs Act reads as under : "127-B Application for settlement of cases - (1) Any importer, exporter or any other person (hereinafter referred to as the applicant in this chapter) may, in respect of a case, relating to him make an application, before adjudication to the Settlement Commission to have the case settled, in such form and in such manner as may be specified by rules, and containing a full and true disclosure of his duty liability which has not been disclosed before the proper officer, the manner in which such liability has been incurred, the additional amount of customs duty accepted to be payable by him and such other particulars as may be specified by rules including the particulars of such dutiable goods in respect of which he admits short levy on account of misclassification, under-valuation or inapplicability of exemption notification but excluding the goods not included in the entry made under this Act and such application shall be disposed of in the manner hereinafter provided : Pro....
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....e should be a notice and the additional duty liability admitted should be more than Rs. 3 lakhs for each and every application. 14. Even though, on the side of the appellant an endeavour was made to put forward the contention that the term 'case' under Section 127A(b) of the Customs Act speaks of 'Pecuniary Jurisdiction under Section 127A of the Act does not refer to proper territorial jurisdiction. At this stage, one cannot ignore an important; fact that the term 'case' as per Section 127A(b) of the Act means any proceeding under this Act or any other Act for the levy assessment and collection of Customs Duty, pending before an Adjudicating Authority on the day on which the application under sub-section (1) to Section 127(b) is made, (substituted as per Finance Act, 2007 (22 of 2007) Section 91 (w.e.f. 1-6-2007) we are of the view that such a contention was untenable because of the fact that Section 127A(b) of the Act categorically refers to any proceeding under the Customs Act or any other Act for levy assessment and collection of Customs Act, pending before an Adjudicating Authority on the date of which the application under Sub-Section (1) Section 127(b) of the Act was made.....
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....atter of fact it cannot be clubbed. The appellant cannot seek in aid of Section 219 of Criminal Procedure code which is alient to the Customs Act especially with reference to the meaning of the 'case' as per Section 127A(b) of the Act which has found its meaning of levy assessment and collection of Customs Duty pending before the Adjudicating Authority etc. and all the more, the said term 'case' does not any way refer to three offences of such kind within a year that may be charged, like the one under Section 219 of Criminal Procedure Code and therefore, the submission of the learned counsel for the appellant in regard to the applicability of Section 219 of Cr. P.C. is negatived by this court. Admittedly no criminal cases were filed against the appellant by the second respondent. Only if criminal cases were filed by the second respondent, the second respondent may Seek in aid of Section 219 of Cr. P.C. Hence the application of section of 219 Cr.P.C. for clubbing of three show cause notices is untenable. Even if criminal cases are filed for the offences committed then there is no embargo in law for separate trial of each offence as per the decision of the Hon'ble Supreme Court AIR 1....
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....e. 21. when the term 'case' as per Section 127A(b) of the Act was clearly defined 'meaning' any proceeding under the Customs Act or any other Act in regard to levy assessment and collection of Customs Duty, pending before the adjudicating authority when an application under Sub-Section 1 of Section 127(B) was made pertaining to the application for Settlement of cases then by no stretch of imagination, it could be contended on behalf of the appellant that there was violation of Article 21 of the constitution of India, viz., personal liberty of the Appellant because of the simple fact that each show cause notice was a separate case before each commissionerates concerning with a amount of duty of less then Rs. 3,00,000/- each was a reasonable classification and therefore, there was no question of any infringment under Article 21 of the Constitution of India relating to liberty of the Appellant and any contra view of the appellant in this regard was only an imaginary one stretching the concept of liberty too far. 22. Section 74 of the Customs Act 1962 refers to Drawback allowable on re-export of duty paid goods, as far as the present case is concerned, the first respondent had no....
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....quently availed all industry rate of duty Drawback in their shipping bills under which the final garment i.e., Garments were manufactured and exported. 26. Chapter XIVA of the Customs Act, being an exemption to the normal procedure contemplated under the Act and occurring in a fiscal statute, has to be necessarily construed strictly, in our considered view, the scope of the proceedings cannot be unduly enlarged. In cases where there was no deliberate or intended desire on the part of importer to evade or avoid payment of customs duty, to provide immunity and protection of such class of people, Legislature has incorporated Chapter XIVA. As a matter of fact, Chapter XIVA was introduced by parliament by relying on similar provisions under the Income Tax Act with a view to introduce remedial measure by way of Settlement Commission, such provision cannot be interpreted to enlarge the scope of settlement where there was deliberate evasion of duty. Cases of mis-declaration and improper availing of benefits entail in confiscation, penal proceedings and others. Settlement Applications under Section 127-B are filed admitting the duty liability. The Settlement Commission has power to award....