2016 (12) TMI 76

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.....Syed Nurullah Sheriff learned Senior Panel Counsel appearing for the respondents 1 and 2 and Mr.V.Sundareswaran, learned Senior Panel Counsel appearing for the 3rd respondent. 2.The order impugned in this writ petition is an order passed by the Customs and Central Excise Settlement Commission (hereinafter referred to as the Settlement Commission). The petitioner who were the importers had imported eight consignments of garment accessories on Nil rate of duty and sold the same in the domestic market by availing the benefit of Customs Notification 21/2002-Cus dated 01.03.2002. On intelligence, it is came to the notice of the third respondent that the garment accessories were diverted by the petitioner and sold in the domestic market. Ther....

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....Ram Nivas Verma) The petitioner in fact admitted the charge in the show cause notice and submitted before the Settlement Commission leaving it to the discretion of the Settlement Commission to pass appropriate orders on the immunities claimed. However, the Settlement Commission appears to have been fully guided by a decision of the High Court of Delhi. In the said case, it was observed that on a plain reading of the third proviso of Section 127B(1) of the Customs Act, it is evident that no application for settlement can be made if it relates to the goods to which Section 123 applies. Thus the Commission held that the matter has to be sent to the adjudicating authority for consideration in accordance with the provisions of the Customs Act. ....