2003 (5) TMI 390 - Commission - Customs

Summary

Issues:
Settlement of customs duty liability, disclosure of additional duty liability, imposition of penalty, grant of immunities from fine, interest, penalty, and prosecution.

Settlement of Customs Duty Liability:
The case involved the import of two consignments of Deithonalamine by the applicant through a Letter of Authority Holder. The applicant paid duty based on the CIF value of the goods, excluding pre-importation costs like bank charges and handling commission. A show cause notice was issued demanding differential duty, which the applicant paid. The settlement application admitted the duty demanded in the notice, leading to the adjustment of the deposited amount towards the duty liability. The Settlement Commission settled the additional duty liability at Rs. 2,96,245, which had already been paid by the applicant.

Disclosure of Additional Duty Liability:
The applicant made a full and true declaration of the duty liability, admitting the entire amount demanded in the show cause notice. The applicant cooperated throughout the proceedings, leading to the Commission granting immunities from fine, interest, penalty, and prosecution under the Customs Act, 1962. The Commission found that the applicant's conduct warranted full immunity, as per Section 127H of the Act.

Imposition of Penalty:
The Revenue suggested imposing a penalty on the applicants, considering the facts of the case. However, the Commission, after reviewing the submissions and records, granted full immunity from penalty, fine, interest, and prosecution due to the applicant's full disclosure and cooperation during the proceedings. The Commission's decision was based on the applicant's behavior and compliance with the settlement process.

Grant of Immunities:
The Commission granted immunities to the applicants under Section 127H of the Customs Act, 1962, due to their full and true disclosure of duty liability and cooperation during the proceedings. The immunities included protection from payment of fine, interest, penalty, and prosecution. However, it was emphasized that the order of settlement would be void if obtained through fraud or misrepresentation of facts, ensuring the integrity of the settlement process.

This detailed analysis highlights the process of settling customs duty liability, the importance of full disclosure and cooperation, the imposition of penalties, and the grant of immunities under the Customs Act, 1962, as outlined in the judgment delivered by the Settlement Commission.