2003 (5) TMI 426 - Commission - Customs

Settlement Commission - Special Bench - Interpretation of statutes - Taxing statutes - Words and phrases - Importer - Interpretation of statutes - Includes - Demand - Show cause notice - Chargeability - Customs duty

Issues Involved:
1. Categories of persons eligible for settlement under the term 'any other person' in Section 127B of the Customs Act, 1962.
2. Requirement for each applicant to fulfill the provisions of Section 127B.
3. Interpretation of the term 'any other person' in Section 127B(1) in relation to the filing of a Bill of Entry (B/E).
4. Whether the filing of a B/E can be overlooked for 'any other person' eligible to apply.
5. Possibility of filing a single application for settlement in respect of more than one proceeding or case.

Detailed Analysis:

1. Categories of Persons Eligible for Settlement:
The Special Bench examined whether individuals other than importers could apply for settlement under Section 127B of the Customs Act, 1962. The term 'importer' as defined in Section 2(26) includes any owner or any person holding himself out to be the importer. The Bench concluded that 'any other person' refers to persons other than importers who may be chargeable with duty, such as custodians of imported goods or agents of importers. The term 'any other person' is not redundant and includes those who can be charged with duty under various provisions of the Act.

2. Requirement for Each Applicant to Fulfill Provisions of Section 127B:
The Bench determined that each applicant must fulfill the requirements of Section 127B. This includes filing a B/E and receiving a Show Cause Notice (SCN). The Bench emphasized that the legislative intent behind the amendment to Section 127B was to ensure that both conditions are met, and this cannot be nullified by interpretation.

3. Interpretation of 'Any Other Person' in Relation to Filing a B/E:
The Bench explored whether 'any other person' could be deemed an importer by implication if they had filed a B/E. It was concluded that 'any other person' could not have filed a B/E, as the definition of 'importer' is specific to the period between importation and clearance for home consumption. Therefore, 'any other person' eligible to apply for settlement must be someone who could not have filed a B/E.

4. Filing of a B/E for 'Any Other Person':
The Bench addressed whether the requirement of filing a B/E could be overlooked for 'any other person'. It concluded that the filing of a B/E is essential for determining whether there is a fresh disclosure and for computing the additional duty liability. However, 'any other person' who could not have filed a B/E due to legal constraints should not be barred from applying for settlement.

5. Filing a Single Application for Multiple Proceedings:
The Bench considered whether a single application could be filed for multiple proceedings. It concluded that a consolidated application could be made if the issues in the proceedings are inter-related. The application form SC(C)-I supports this by seeking information on 'proceedings' rather than 'a proceeding'.

Majority and Dissenting Opinions:
The majority opinion, supported by the Vice-Chairman and another Member, held that 'any other person' could apply for settlement provided a B/E has been filed in the case, not necessarily by the applicant, and a SCN has been issued. The dissenting Member argued that the definition of 'importer' should be period-specific and that 'any other person' should have filed a B/E to be eligible for settlement. The majority view prevailed, emphasizing a harmonious construction of the statute to achieve the legislative intent.

Conclusion:
The judgment clarifies that 'any other person' eligible for settlement under Section 127B includes those who could not have filed a B/E but are chargeable with duty. Each applicant must fulfill the requirements of Section 127B, and a single application can be filed for multiple inter-related proceedings. The majority view emphasizes a broader interpretation to ensure the legislative purpose of the settlement scheme is achieved.

← Previous Next →