2005 (8) TMI 508 - Commission - Customs

Summary

Issues:
1. Review of Final Order by Settlement Commission for withdrawal of immunities granted to the applicant.
2. Legality of the Review Application filed by the Revenue.
3. Compliance with Settlement Commission's Final Order by the Revenue.
4. Reliance on fresh evidence by Revenue after settlement of the case.
5. Responsibility of Revenue for flouting the Final Order and consequential demurrage.
6. Indifferent attitude of Revenue authorities towards Settlement Commission's order.
7. Need for disciplinary action against errant officers in Revenue.

Issue 1: The Review Application was filed by the Revenue to withdraw immunities granted to the applicant in a case involving misdeclaration of a car's model and year of manufacture to evade customs duty. The Settlement Commission had settled the case granting full immunity to the applicant, but the Revenue sought to review and withdraw the immunities based on fresh evidence.

Issue 2: The legality of the Review Application was challenged by the respondent, arguing that the Settlement Commission's orders are final and conclusive under Section 127J of the Customs Act. The respondent contended that the Revenue's attempt to review the Final Order was impermissible and amounted to trying to improve upon its investigation, contrary to legal provisions.

Issue 3: The Revenue failed to comply with the Settlement Commission's Final Order, leading to the applicant seeking relief from the High Court for the release of the car. The Bench held the Commissioner of Customs responsible for not releasing the car as ordered and for any demurrage suffered by the applicant.

Issue 4: The Revenue relied on fresh evidence post-settlement to change the year of manufacture of the car, highlighting discrepancies in their earlier investigation and Show Cause Notice. The Bench criticized the Revenue for issuing the Notice based on incorrect evidence and conducting further investigations only after the settlement.

Issue 5: The Bench observed the indifferent attitude of Revenue authorities towards the Settlement Commission's order, emphasizing the need to reduce litigation. The Commission directed the Secretariat to inform the Ministry and senior officers of the Department about the matter, indicating a lack of compliance and disciplinary action against errant officers.

In conclusion, the Settlement Commission rejected the Review Application, emphasizing the finality of its orders and the Revenue's obligation to comply. The judgment highlighted the importance of upholding Settlement Commission decisions, discouraging attempts to circumvent settled cases through fresh investigations. The Revenue's actions were scrutinized for flouting orders and relying on incorrect evidence, underscoring the need for accountability and adherence to legal procedures.