TaxTMI 
TaxTMI 
2011 (3) TMI 1375
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....s Act, 1962 (in short "the Act") for settlement of the case arising out of Show Cause Notice (SCN) F. No. SG/Mis-56/2010 CIU JNCH dated 3-12-2010 issued by the Commissioner of Customs (Import), JNCH, Nhava Sheva demanding differential duty of Rs. 4,94,214/- under Section 28(1) of the Act from the applicant. The reference application is preferred under sub-section (1) of Section 127B of the Act. 2. Brief facts of the case are that the applicant, M/s. Honest Enterprise Ltd., holder of IEC No. 3499003651 is a Private Limited firm. They are engaged in the trading of Imports and Exports of Stainless Steel Product like sheets, plates, coils, pipes etc. The applicant had imported stainless steel coil by sea against several Bills of Entry f....
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....f 'Secondary/Defective' in nature. 2.4 It also revealed that the applicant had mis-declared the impugned goods as Prime Cold Rolled Stainless Steel Coils Tube Grade 201, 2B finish with composition as Ni 0.3%, Cu 0.4%, Cr 10.5%, Mn 13.5% and thickness as 1.5 mm or 06 mm and width 485 mm whereas the same were found Secondary/Defective in nature and the chemical composition and sizes were also not found as declared. Further, impugned goods contained in 16 coils out of 32 coils, totally weighing 73756 kgs were also misdeclared as Cold Rolled Stainless Steel grade 201. However, the chemical composition in terms of the definition of the Stainless Steel stipulated at Chapter Note-1(e) of Chapter 72 in the Customs Tariff Act, 1975 as amende....
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.... @ BCD 5% + CVD 8% + Ed. Cess 2% + 1% on CVD + Ed. Cess 2% + 1% on Custom Duty + 4% SAD after denying the benefit of exemption Notification No. 21/2002-Cus., dated 1-3-2002, Sr. No. 207 and revenue deposit of Rs. 4,94,214/- already made towards the differential duties should not be appropriated toward above payment and the assessment should not be finalized accordingly; (ii) The goods contained in 16 coils out of 32 coils (as mentioned in details at Para 11.1 of the SCN) totally weighing 73756 kgs should not also be considered further mis-declared, since, as per chemical composition in terms of the definition of the Stainless Steel stipulated at Chapter Note - 1(e) of Chapter 72 in the Customs Tariff Act, 1975 as amende....
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....the above, the applicant, respectfully prayed that the Hon'ble Settlement Commission may be pleased to :- * admit and settle the applicants' case as a whole once and for all. * grant immunity from imposition of any fine, penalty on the applicants under the provisions of Customs Act, 1962 and Rules made thereunder. * grant immunity from prosecution under Customs Act, 1962. 7. Notice dated 19-11-2010 under Section 127C(1) of the Act, was served upon the applicants, inviting clarification on whether the application fulfills the criteria as laid down under Section 127B of the Act, and also inform the Commission whether th....
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....he attention of the Bench to the fact that the applicant has incurred heavy expenses on account of demurrage and retention charges and prayed for immunity from fine, penalty and prosecution. 10. The Revenue was represented by S/Shri Arun Kumar, Appraiser, C.I.U, JNCH, Raigad and Madhuranjan Singh, Appraiser, Gr-IV, JNCH. The ld. Representative submitted that Revenue have no objection in settlement of the case. 10.1 Responding to a query raised by the Bench regarding claim of the applicant concerning interest liability, the ld. Representative submitted that the applicants have paid the duty as Revenue deposit. Therefore the applicant is required to pay the interest involved on the said duty which has not been deposited by the....
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....s. However, it cannot be ignored that there had been a preplanning in the mis-declaration and undervaluation of the subject goods as alleged in the SCN, which has a bearing on imposition of penalty. 12. In view of the above discussion, the following terms and conditions are laid down under sub-section (5) of Section 127C of the Customs Act, 1962 for settlement of the case :- Customs Duty : The differential Customs duty payable in this Case is settled at Rs. 4,94,214/- (Rupees Four Lacs Ninety Four Thousand Two Hundred Fourteen Only). This amount stands paid by the applicant and confirmed by the Revenue. Interest : Since the duty was paid before the goods were cleared, interest is not applicable. Fine & Penalty : Considering....