2006 (7) TMI 541 - Commission - Customs

Summary

Issues: Settlement application for customs duty, liability for interest payment, immunity from penalty and prosecution

In this judgment by the Settlement Commission for Customs and Central Excise, the applicants filed an application for settlement of proceedings initiated against them based on a Show Cause Notice. The applicants admitted the full duty demand, and the Bench directed the encashment of the Bank Guarantee for the admitted duty. The Revenue confirmed the realization of the duty through the Bank Guarantee. During a hearing, the applicants' advocate requested immunity from interest, penalty, and prosecution, while the Revenue argued for interest to be charged.

The Bench considered the arguments and noted that the duty had been paid, deserving settlement due to cooperation. However, as the import was under the DEEC Scheme with a bond for duty and interest payment, the applicants were found liable for interest under the bond's contractual obligation. Referring to a Calcutta High Court judgment and changes in the foreign trade policy, the Bench decided to grant partial immunity from interest exceeding 10% per annum.

The final settlement terms included fixing the duty liability, payment of 10% interest per annum from the due date till payment, granting immunity from confiscation, penalty, and prosecution to the applicants under the Customs Act, and extending immunities from penalty and prosecution to co-applicants. The settlement would be void if any material particulars were withheld or false evidence was provided. The immunities were granted under the Customs Act, with attention drawn to specific sections regarding the consequences of providing false information.