2002 (4) TMI 303 - Commission - Customs

Issues Involved:
1. Misdeclaration of goods in export consignments.
2. Seizure and confiscation of Indian currency.
3. Duty liability on imported Titanium Dioxide.
4. Settlement of duty liability.
5. Interest and penalties.
6. Immunity from prosecution.

Detailed Analysis:

Misdeclaration of Goods in Export Consignments
The applicant was found to have misdeclared goods in export consignments. The Directorate of Revenue Intelligence (DRI) called back three export consignments and found misdeclared goods. The applicant admitted to misdeclaration in initial statements but later retracted.

Seizure and Confiscation of Indian Currency
Indian currency amounting to Rs. 66,99,000/- was recovered from the export consignments and Rs. 1,22,30,000/- from the applicant's residence-cum-office. The applicant initially admitted ownership of Rs. 47.49 lakhs from the first two consignments and Rs. 19.50 lakhs from the third consignment but later retracted. The applicant provided evidence of the source of Rs. 1,22,30,000/- but the currency has not been returned.

Duty Liability on Imported Titanium Dioxide
The applicant admitted to diverting one consignment of Titanium Dioxide imported under DEEC Advance Licence and paid Rs. 13,52,419/- as duty. The Revenue calculated the duty liability for 20 MT of Titanium Dioxide to be Rs. 12,10,849/-. The applicant also agreed to pay Rs. 13,12,258/- for 21.675 MT of Titanium Dioxide not accounted for, making a total duty liability of Rs. 25,23,107/-.

Settlement of Duty Liability
The Settlement Commission ordered the applicant to pay the balance duty of Rs. 11,70,688/- within 30 days. The applicant had already paid Rs. 13,52,419/-. The total duty liability accepted was Rs. 25,23,107/-.

Interest and Penalties
The Commission imposed an interest of 10% on the admitted duty liability from the date of import until final payment. The applicant was given immunity from fines and penalties due to cooperation and full disclosure.

Immunity from Prosecution
The applicant was granted immunity from prosecution under the Customs Act, 1962, and the Indian Penal Code.

Indian Currency
The Commission ruled that the seized Indian currency does not fall within the definition of "case" for the Settlement Commission's decision. The Revenue is to take appropriate action regarding the seized currency.

Release of Bond with Bank Guarantee
The Bond with Bank Guarantee executed by the applicant will be discharged after compliance with the order regarding payment of duty and interest.

Order Voidance
The order of settlement will be void if obtained by fraud or misrepresentation of facts.

This comprehensive analysis covers all the issues involved in the judgment while retaining the original legal terminology and significant phrases.

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