TaxTMI 
TaxTMI 
2014 (4) TMI 1182
X X X X Extracts X X X X
X X X X Extracts X X X X
....carried out a search of the petitioners' godowns in respect of eight containers stuffed with various articles, such as window and split AC, cigarettes, gas cylinders, LED, heaters, etc. 3. In the course of proceedings, the statements of petitioners were recorded on four occasions, between July and September, 2012. The details of the goods recovered and seized by the DRI were subsequently classified into two categories, on 28-5-2003. The first category pertained to goods removed fraudulently without furnishing any import documents, which resulted in demand for a sum of Rs. 2,86,84,343/-, made by a show cause notice dated 28-5-2003. In this background, the petitioner approached the Settlement Commission with an application under Secti....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... portion of 127B(1) would be rendered an illusion if in every case, the show cause notice, which is impugned in the Commission's proceedings, should necessarily be the subject matter of Bill of Entry which has to accompany the application. 6. This Court notices that the Commission rejected the petitioners' arguments on the basis of the following reasoning : 'xxxxxx   xxxxxx   xxxxxx 16.1 The Bench has carefully considered the record and the submissions made by the applicants and Revenue at the time of hearing. The Bench observed that the applicant has removed eight (8) containers containing different goods from the ICD, Tughlakabad. The gate pass for taking delivery of the goods was manipulat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....itted that these bills of entry are not relatable to the goods. 16.4 It has been submitted on behalf of the applicant that 'any person' is entitled to make application in terms of Section 127B of the Act if he has been issued a SCN. This is based upon a decision of the Gujarat High Court. In that case imported polyester chips had been purchased by M/s. Mahendra Petrochemicals Ltd. (the petitioner) from one Rajwada Industries of SEPZ, Surat, who was the importer. The Settlement Commission had held that the purchaser of the imported goods was not eligible to make a settlement application because he had not filed the bill of entry. It was, however, not the case that no bill of entry had been submitted at all. The Settlement Commission ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....which he admits short levy on account of misclassification, undervaluation or inapplicability of exemption notification or otherwise and such application shall be disposed of in the manner hereinafter provided : ..... 'Provided' that no such application shall be made unless, - (a) the applicant has filed a bill of entry, or a shipping bill, in respect of import or export of such goods, as the case may be, and in relation to such bill of entry or shipping bill, a show cause notice has been issued to him by the proper officer; (b) the additional amount of duty accepted by the applicant in his application exceeds three lakh rupees; and (c) the applicant has paid the additional amount of customs duty accepted by hi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecified by rules. (4) An application made under sub-section (1) shall not be allowed to be withdrawn by the applicant.' 7. As is evident, the right to approach the Commission is given to three categories of persons, i.e. importers, exporters or any other person they are collectively referred to as applicant. The application should make a full disclosure of the duty liability which was hitherto undisclosed before the appropriate officer. The additional amount of customs duty payable by the applicant along with particulars of the dutiable goods in respect of the shortfall on account of misclassification, undervaluation or inapplicability of exemption notification or otherwise has to be also disclosed in the application. The pr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntroversy and speedy resolution is understandable, at the same time, this Court is aware that the Parliamentary intention in affording access to the settlement mechanism is conditioned by the express terms. So viewed, the proviso spelling-out no less than six conditions have to be seen as part of the entire scheme. It is not sufficient for any applicant be he an importer, exporter or other person, to merely file an application, he has to perforce file the Bill of Entry or Shipping Bill in respect of which show cause notice has been issued; likewise, the applicant has to deposit the amount accepted by him along with interest [proviso (b) and (c)]. Furthermore, the Settlement Commission has no jurisdiction in respect of cases that are pending....